NKE stock - What's wrong with it?

Super bloated with vps and “execs” who aren’t pushing the brand forward.

No current signature athletes that sell shoes.

Sneaker culture has shifted dramatically away from basketball shoes, which nike dominates.

Tons of more sought after athleisure brands have popped up over the last couple of years that offer a more premium product for similar price.

Became too one dimensional and too expensive

Just replaced their CEO, sneaker/hype culture died down, athliesure is in and Nike aren’t very good at it, not as many dominant sponsored athletes, competition has caught up to them in running shoes.

I think they’ll get back on track within 5 years or so, at least in the running world.

They’re completely rudderless. A couple years ago their big move was cutting footlocker out and going direct to consumer. Last year they argued their problems came from cutting out footlocker and pivoted to get them more engaged with their consumers.

I think the more understated aspect is the over commercialization of sports. Customer acquisition costs must be insane considering you must pay influencers to wear your products and pretend you are their product of choice. It doesn’t really matter how much they grow sales if they’re increasingly forced to share greater portions. They also can’t lower costs considering they already rely on slave labor.

China exposure has really hurt too. Not the main problem, but cannot be ignored either.

I can think of 2 athletes that may have an effect on Nike's downgrade:

Jordan - I don't think Jordan carries the same weight as it once did. That could coincide with the shift in basketball shoes like a post above mentioned. Jordan is revered by a generation that is aging away from the younger generations every day. There's no way the younger players growing up into basketball today really care about Jordan like we (ages 30 and up) do/did. Combine that with the over saturated basketball shoe market, I just don't think it holds the same weight it once did.

Tiger Woods - I know his market presence was never near that of Jordan, but he carried a lot of weight in the marketability of golf. At one point, even golf equipment. Can't imagine how many weekend warrior golfers bought Nike apparel just because of Tiger. Admittedly, I was one of them. Him leaving and doing his own thing had to have a pretty decent effect on Nike revenue.

Hard to imagine only 2 athletes having that much of an effect on a brand, but I'm happy to hear any other examples of a Nike athlete that could carry a brand the way they did.

I will add a biased opinion because he's my favorite player of all time -- if Griffey wasn't as injury prone as he was, which led to a lot of absence from the game and advertising, his Swingman/Nike collab could have been much much bigger.

The running world has several super competitive brands as well.

LeBron killed Nike. Just like the NBA.

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I personally think it’s a good buy after it dropped 30%.

Massive company and will likely regain momentum soon

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I am going to do my first covered call.
I got to buy the one hundred shares first.
Then
Should I do one NKE covered call
Or
One CVS covered call?
Thanks in advance.

Sell a put first if you don't own the stock and then take assignment once it closes ITM.