Today, I’ve picked an anti-example for you: Nike, which has dropped by 77% since 2021. Usually, when a company drops 50% from its peaks, it makes sense to buy the dip, provided, of course, that it maintains solid financial health. Just yesterday, I posted a list of such financially healthy companies, but it didn't get many likes 🥲
What’s the situation with Nike?
– Stagnant revenue, with sharp declines in key regions
– Declining free cash flow
– Historically declining margins (which invariably leads to business stagnation)
– A rising forward P/E ratio
– And so on...
The company does NOT look healthy 🚫
Plus, Nike itself operates in the fairly specific apparel secto, it’s not like the semiconductor trend that will be with us for decades. That said, I know other apparel companies that are still managing to grow their numbers.
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2August 18, 2026 1.3K 1 3
