Originally Posted by
Guisslapp
I wouldn’t suggest that anyone take stock advice from me. But we were all watching Nike stock the day and week of the announcement because someone created a thread on it.
The initial movement was down as it was a controversial announcement and some investors are going to flee controversial stocks when it doesn’t fit their risk profile. In the week following the announcement people flocked back to the stock and the price completely recovered and set new all time highs. Sales grew.
Nike stock, like most everything else is going through price adjustments over the past several months with all the market volatilty. This month has been particularly crazy with the DJIA making triple digit moves in all but 3 trading sessions. These moves are based on shifting reactions to trade disputes, larger economic growth indicators, inflation and interest rate fears, geopolitical fears, etc.
The proof of the impact of the Nike endorsement will be much clearer in Nike’s earnings announcement that is expected this coming week.