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Nike (NYSE:NKE) has long been one of the most recognizable brands in the world — a powerhouse that has dominated sneakers, apparel and global culture for decades.
But recently, their story has taken a major turn.
The sports giant’s shares have fallen about 75% from their peak in late 2021, wiping out nearly $200 billion in market value. At the same time, profits have also taken a hit, with the latest earnings report showing a 35% drop in net income (1).
Behind the scenes, even leadership appears to be weakening.
“I’m tired and I know you are too when it comes to fixing this business,” CEO Elliott Hill said in a recent internal meeting, Bloomberg reported (2). “You can’t just sit there and say everything is great.”
Chief Financial Officer Matthew Friend struck a similarly cautious tone, noting that “the business trajectory is downward” and “our business is not on track.”
In an emailed statement to Bloomberg, a Nike spokesperson said: “It was a direct conversation about where we are seeing real progress, where we need to move faster and what it will take to win. The discussion reflected the same reality we have shared externally: urgency, transparency, focus and determination to restore growth.”
The company has been going through a difficult transition in recent years – from changing consumer preferences and increased competition to adjusting its supply chain and promoting direct-to-consumer sales.
Some critics (3) have criticized Nike’s marketing choices and cultural positioning, arguing that the brand has strayed too far into social issues – and now it is paying the price (4).
The phrase “wake up, go bust” has reappeared (5) in online comments surrounding the company’s recent difficulties.
But that explanation may be too simple.
Nike’s challenges reflect a broader set of pressures facing the retail and consumer goods sectors. Rising costs, changing consumer habits, inventory errors and increasingly fierce competition from brands like On and Hoka all play a role.
In other words, it’s not just a matter of messaging — it’s also a matter of execution, strategy, and a rapidly evolving market.
And those pressures have appeared in Nike’s financial situation.
In Nike’s fiscal third quarter ended February 28, revenue totaled $11.28 billion, flat on a reported basis and down 3% year-over-year on a currency-neutral basis. Earnings per share came to 35 cents, down 35% from a year ago.
Notably, those numbers actually beat Wall Street expectations, as analysts predicted earnings of 28 cents per share on revenue of $11.24 billion (6).
However, Nike shares still dropped 8.4% after announcing this information.
What disappointed investors was the outlook. During the earnings call, management said the company expected revenue in the current quarter to decline 2% to 4%, compared with Wall Street’s forecast of a 1.9% increase. The company also warned that sales in mainland China could decline by about 20%.
For the calendar year, Nike expects revenue to decline in the single digits.
Although Nike stock has now fallen to its lowest level in a decade, not everyone is pessimistic. Following the report, Jefferies analyst Randy Konik reiterated his “Buy” rating on the stock, calling it “very attractive” at current levels. Konik has a price target of $90 – about 110% above where the stock trades today (7).
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For investors, the downturn in Nike stock is a reminder that even the biggest names can falter – underscoring the importance of building a diversified portfolio.
Instead of relying solely on stocks, many investors seek to spread risk across different asset classes that may perform differently in uncertain times.
According to Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, one of the most tested ways to do that is through gold.
“Oftentimes, people don’t have enough gold in their portfolio,” he told CNBC last year. “When tough times hit, gold is a very effective diversification tool.”
Long considered the ultimate safe haven, gold is not tied to any country, currency or economy. It cannot be printed out of thin air like fiat money, and in times of economic uncertainty or geopolitical turmoil, investors tend to pour in money – increasing its value.
Despite the recent price drop, gold prices have increased by more than 45% in the past 12 months.
One way to invest in gold that also offers significant tax advantages is to open a gold IRA with the help of Priority Gold.
A gold IRA allows investors to hold physical gold or gold-related assets in a retirement account, thus combining the tax advantages of an IRA with the protection benefits of investing in gold, making it an option for those who want to help protect their retirement against economic uncertainties.
When you make a qualifying purchase with Priority Gold, you can get up to $10,000 in precious metals for free.
Like stocks, real estate has its own cycles but it does not rely on booming markets to generate profits.
Even during a recession, high-quality, essential real estate can continue to generate income through rent. In other words, you don’t have to wait for prices to rise to see profits — the asset itself can benefit you.
In fact, investing legend Warren Buffett often cites real estate as a prime example of a productive, income-generating asset.
In 2022, Buffett announced that if you offered him “1% of all apartments in the country” for $25 billion, he would “write you a check.”
Real estate also provides a natural hedge against inflation. When inflation rises, asset values often rise as well, reflecting higher costs of raw materials, labor and land. At the same time, rental income tends to increase, providing landlords with an inflation-adjusted revenue stream.
Of course, you don’t need $25 billion – or even to buy an entire property – to invest in real estate today. mogul, a crowdfunding platform, offers an easier way to access this income-generating asset.
It’s a real estate investment platform that offers fractional ownership of blue-chip rental properties, giving investors monthly rental income, real-time appreciation, and tax benefits — without the need for a large down payment or calling tenants at 3 a.m.
Founded by former Goldman Sachs real estate investors, this team selects the top 1% of single-family rental homes nationwide for you. In other words, you get access to the organization’s quality services at a fraction of the usual cost.
Each asset goes through a rigorous vetting process, requiring a minimum return of 12% even in adverse situations. Overall, the platform has an average annual IRR of 18.8%. Offerings typically sell out in less than three hours, with investments typically ranging from $15,000 to $40,000 per property.
You can sign up for an account and then browse the available properties here.
Another option is Lightstone DIRECT, which offers accredited investors access to institutional-quality multifamily and industrial real estate — with a minimum investment of $100,000.
Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest privately held real estate investment firms in the United States, managing more than $12 billion in assets.
For nearly four decades, their team has delivered strong, risk-adjusted performance across multiple market cycles – including a historical net IRR of 27.6% and a historical net equity multiple of 2.54x on investments made since 2004.
With Lightstone DIRECT, you have access to industrial and multifamily transactions that Lightstone pursues with its own capital.
Here’s the starting point: Lightstone invests at least 20% of its equity in each deal — nearly four times the industry average. With skin in the game, the company ensures its interests are directly aligned with those of its investors.
Famous investors like Dalio often stress the importance of diversification – and for good reason. Many traditional assets tend to move in tandem, especially during periods of market stress.
That message feels especially relevant today. Nearly 40% of the S&P 500’s weight is concentrated in the 10 largest stocks, and the index’s CAPE ratio hasn’t been this high since the dot-com boom.
This is where for many investors, alternative assets come into play. These can include everything from real estate and precious metals to private equity and collectibles.
But there’s one store of value that often goes unnoticed: It’s scarce by design, coveted by the world, and too often locked up by institutions.
We’re talking about post-war and contemporary art – a category that has outperformed the S&P 500 with low correlation since 1995.
It’s easy to see why works of art often reach new highs at auction: The supply of the best art is limited, and many of the most sought-after pieces are snapped up by museums and collectors. That scarcity can also make art an attractive option for investors looking to diversify and preserve wealth during times of high inflation.
Until recently, buying art was the preserve of the extremely wealthy – such as in 2022 when an art collection owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history (8).
Now, Masterworks — a platform that invests in shares of blue-chip artworks by famous artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy — can help you get started with this asset class. It is easy to use and with 27 successful exits to date, Masterworks has distributed over 65 million USD in total proceeds (including principal).
Simply browse their impressive catalog and choose the number of shares you want to buy. Masterpiece can handle all the details, making high-end art investing both accessible and easy.
New products sell out in minutes, but you can skip the waiting list here.
Note that past performance is not indicative of future returns. Investing involves risk. See Reg A disclosures at masterworks.com/cd.
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Nike, Inc. (1); Bloomberg (2); USA Today (3); YouTube (4); X(5); CNBC (6),(7); Christie’s (8)
This article is for information only and should not be construed as advice. It is provided without warranty of any kind.
