Nike's (NKE, Financial) stock price experienced a significant drop, leading to the athletic apparel company's market capitalization falling below $100 billion for the first time since the pandemic. The recent performance report indicated continued pressure on both revenue and profitability, causing the stock to plunge by as much as 9.3%, reaching its lowest level since March 2020. This decline wiped out approximately $9 billion from Nike's market value, bringing it down to $97 billion.
Since reaching a record high in November 2021, when the company's market cap was around $281 billion, Nike's stock has fallen over 60%. The company anticipates further declines in revenue and profitability for the current quarter due to ongoing inventory adjustments. Additionally, Nike, which has manufacturing facilities in Asia and Mexico, noted that its outlook reflects the anticipated impact of newly implemented tariffs.
