Nike, an apparel company with shrinking sales, trades at a premium to the companies selling the most important products on earth. Per @LeifInvests, Nike's forward P/E of 22.6x is higher than Broadcom's ~20.5x, NVIDIA's ~19x and Oracle's ~17x. x.com 

Nike's turnaround is looking much longer than bulls expected, and about 17x forward earnings is not cheap for a business growing low single digits. China sales fell 26% FX-neutral while Adidas' Greater China sales grew 15%, pointing to a Nike problem, not a China problem. Sportswear fell low double digits with Dunk revenue down about 50%, Jordan fell mid-teens, and most PACE savings are expected only in FY29-30; Performance grew high single digits. The must-buy price is $25. x.com  x.com  x.com 

Nike's brand concerns look priced in; stabilization, not sudden revenue acceleration, is what the speculative long needs. A few good campaigns and a return to large stores could help, though China consumers will be a drag. Short-term EPS is a poor indicator, and customers may return after trying other brands. x.com  x.com 

Nike is still super expensive even if it pulls a magic trick on margins, and the stock has been a buy-the-dip nightmare because the brand became uncool. It can keep existing while slowly fading, which is a terrible investment case. x.com  x.com 

Nike looks overvalued at about 25.6x forward earnings for a business guiding to high-single-digit revenue declines. At $32 on $1.25 of EPS, per the lowered guidance @TrendSpider reports, plus a 5% dividend, tobacco stocks like Altria should triple if that is the going rate for shrinking sales. Nike does not merit a tobacco multiple: it angered its distributors, faces more premium rivals and new entrants, has less loyal customers, is no government-mandated duopoly and pays for costly marketing. … Show more

Nike is setting up for a reversal as sentiment hits an extreme. It has been a long time since so many people dunked on a stock whose apparel is used so widely every day around the world, even as Nike is the only Dow stock down over the past decade, by 32.5%. x.com 

Nike deserves a lower valuation than even 14x earnings, which is generous for a shoe company with shrinking revenue. It still trades above 20x earnings, while the S&P 500 trades at 19x with huge growth. x.com 

Nike's 29x P/E even after a steep share-price decline leaves it expensive enough to short. x.com 

Nike's valuation pays investors to wait for a turnaround that will take longer than expected. It trades at just 16x earnings, near its lowest valuation ever, with a roughly 5% dividend yield, and would need a 127% rally to regain its 200-week moving average. Revenue is projected to fall another 4% in FY2027, but the business will grow again; the market prices it as if it were disappearing. Unlike Novo Nordisk, Nike faces no patent cliff. x.com  x.com 

Nike's big-brand advantage from the 1980s and 1990s is over. Social media changed the rules of the game, young people don't follow sports like they used to, and the edge from Chinese production is gone because almost anyone can slap a label on a shoe. x.com