Nike Shares Rebound 5% on Tech Rotation, but Turnaround Still Uncertain as Analysts See More Downside

Nike (NKE) stock jumped more than 5% on Thursday, becoming the Dow's top performer, as investors rotated out of AI-related tech names into beaten-down consumer stocks—despite no company-specific news. The gain offered only slight relief: shares closed Tuesday around $38, roughly 80% below pandemic-era record highs and down about 40% year-to-date. Two years into CEO Elliott Hill's tenure, the world's largest athletic apparel retailer continues resetting expectations. Nike's fiscal first-quarter results this month came in weaker than expected, and the company warned sales will decline this fiscal year. Shares fell to a 13-year low following the report, with some analysts doubting a recovery before 2028. Hill acknowledged "a lot more work to do," saying the turnaround "will take time." Wall Street remains divided. Jefferies recommends aggressively buying shares, expecting a "substantial earnings recovery" over two years, while Deutsche Bank calls the turnaround only in its "middle innings." The Street's mean price target of about $32 implies roughly 15% downside from recent levels. Nike hosts an investor day on Nov. 16 and 17.