NKE Stock Slips Premarket: Nike Hits Historic Low As Turnaround Struggles Mount

Nike stock faces pressure from weak demand, China challenges, and growing Wall Street concerns.

• Nike shares have fallen more than 77% from their 2021 peak, wiping out over $224 billion in market value. 
• Technical indicators also show extreme weakness, with weekly and monthly RSI levels reaching multi-year lows. 
• Nike will also lose its place in the S&P 100 effective next week.

Nike Inc. (NKE) stock slipped premarket Monday as the sneaker giant’s historic downturn deepened, with the stock down over 77% from its 2021 peak. Growing Wall Street skepticism, weak demand and ongoing strategic challenges have clouded CEO Elliott Hill’s turnaround efforts, leaving investors questioning how quickly Nike can regain momentum. 

Nike stock edged 0.5% lower in Monday’s premarket, after clocking three straight weeks of decline.  

Nike’s Historic Stock Collapse Deepens 

Nike is facing one of the toughest periods in its history, with the stock down over 77% from its November 2021 peak. The steep decline has erased more than $224 billion in market value and pushed the stock toward valuation levels last seen in 2014.

Technical Signals Show Deep Weakness

Nike’s technical indicators show how severe the stock’s decline has been. Koyfin data shows its weekly RSI is at its lowest since May, while the monthly RSI has fallen to its weakest level since 1984, suggesting the stock is heavily oversold. 

Nike’s Strategy Creates New Challenges 

Nike’s stock did very well after 2016, driven by strong demand for casual sportswear during the pandemic, rising online sales and a strong overall stock market. But that growth has since faded. 

Troubles have built over several years as the company struggled to make its direct-to-consumer strategy work without damaging relationships with traditional retail partners. Weakening demand for lifestyle products and a prolonged slowdown in Greater China have added to the pressure, turning what was once viewed as a premier growth story into a major turnaround challenge.

Wall Street Turns More Cautious On Nike 

Last week, Morgan Stanley analyst Alex Straton resumed coverage of Nike with an ‘Underweight’ rating and a $31 price target, implying an 18% downside to the stock’s last closing price. The firm expects Nike’s earnings to remain below Wall Street estimates through fiscal 2030, mainly because of weaker sales expectations in China and a slower recovery. Morgan Stanley also says Nike’s valuation remains high given its weaker growth outlook. 

Nike now trades at a price-to-earnings ratio of 21.5. Investor confidence took another hit after the company reported little progress in revenue growth and weaker diluted earnings for its fiscal fourth quarter (Q4) 2026.

During Nike's Q4 earnings call, President and CEO Elliott Hill said slower product sales have led to more discounts and weaker future wholesale orders, while lower consumer spending and fewer shoppers in stores have added pressure across many markets. 

“We know we're not living up to our full potential, particularly in Nike Sportswear and Jordan Streetwear, where sell-through remains challenged, impacting both current discounting and future order books,” said Hill. 

Nike will also lose its place in the S&P 100 on Sept. 21, following an announcement from S&P Dow Jones Indices. The change could create additional selling pressure as funds designed to track the index adjust their holdings.

NKE Stock: Retail View 

On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory. 

NKE stock has cratered 42% year-to-date. 

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