Nike Stock Suffers Historic 15% Crash Hours After Jim Cramer’s Bullish Call
Nike's stock plummeted 15.5% after its Q3 earnings revealed weakening profits, a drop amplified by Jim Cramer's prior positive outlook.Summary
Nike (NKE) shares experienced a significant 15.5% crash on April 1st following the release of its fiscal Q3 earnings, which revealed underlying profit weakness despite meeting headline expectations. This marked the stock’s second-largest single-day loss in 25 years, bringing the price down to around $44.63. The decline was quickly dubbed part of the “Cramer Curse” after CNBC’s Jim Cramer expressed a positive view on the stock just before the drop, prompting social media mockery and highlighting the Inverse Cramer Tracker ETF’s strategy of betting against his picks. While Nike reported revenue of $11.28 billion, slightly above expectations, net income fell 35% year-over-year, and forward guidance projected a 2-4% sales decline in Q4, with Greater China revenue expected to fall around 20%. The company’s turnaround efforts under CEO Elliott Hill are facing increasing scrutiny as competition from brands like On Running and Adidas intensifies, and the stock now trades 71% below its all-time high.
(Source：BeInCrypto)