Why Nike's Stock Keeps Dropping, in Plain English
Bank of America cut Nike to Underperform from Neutral, basically saying it expects Nike to do worse than most stocks. Nike shares fell more than 2% in early trading before the market opened on Friday, Sept. 25, 2026. Investing.com
Nike had already dropped 78% from its 2021 high. It faced being removed from the S&P 100, a list of 100 large U.S. companies. Forbes
In trading reported April 1, 2026, Nike fell as much as 14% in one day. At the lowest point that day, it was down 29% so far that year. Business Insider
In its report for the third quarter of its 2026 financial year, Nike said sales would fall 2% to 4% in the current quarter. Outside experts had expected 1.9% growth instead. CNBC
Nike's finance chief said sales would be down by a small amount, low-single digits, from March 2026 through the end of 2026. CNBC Shares dropped even though Nike's profits beat expectations for that quarter. CNBC
The broader context here is how long the weak patch lasts. Think of it like a household pay cut that lasts for months, not one bad week. One bad month can be handled, but months of lower pay force a full rethink of spending. That is why good profits for one quarter still led to selling, because investors care more about next year than last quarter.
In my view, the order of events matters. The bad news started in April, when Nike's own forecast came in far below expert forecasts. The September downgrade came after most of the big fall had already happened. Late downgrades often catch up to what markets already know. Talk of leaving the S&P 100 adds pressure, because funds that copy that list would have to sell. With sales shrinking into December, most experts will wait until sales stop falling before turning less cautious.
