Nike shares have fallen roughly 78% from their late-2021 peak, wiping out more than $200 billion in market value and sending the Nike stock price to its lowest level in 12 years. JPMorgan added to the pressure by cutting the shares from Neutral to Underweight.
That move is drawing attention now because investors are looking past the headline numbers and asking whether the turnaround can restore confidence. Nike's latest quarterly results topped Wall Street expectations on both earnings and revenue, yet the stock still sank, a sign that the market is focused less on the beat and more on what comes after it.
Elliott Hill has already told employees he is done talking about the problem in the abstract. Earlier this year, during an internal meeting, the CEO said, “I'm so tired, and I know you are too, of talking about fixing this business,” and added, “You can't just sit there and say everything's great.”
The gap between those words and the numbers is what makes the downgrade harder to dismiss. Nike is still wrestling with shifting consumer preferences, higher competition, supply chain adjustments and a push toward direct-to-consumer sales, while critics say the brand leaned too far into social issues. Greater China revenue dropped 12% in the most recent quarter, and the pressure is coming from a business that once dominated sneakers, apparel and popular culture for decades.
Analyst Matthew Boss said Nike's recent “Win Now” decisions “will linger and impact NKE's P&L in 2H27 and into FY28.” That leaves the market with a simple test: whether Hill's reset can move fast enough to matter before the damage from the last few years is fully baked into the business.
