Nike stock price has crashed to an important support level, and technicals suggest that it may drop further in the coming weeks or months.
NKE has dropped in the last five consecutive weeks, reaching its lowest level since April 15 last year.
It has dropped by nearly 70% from its highest point in 2021.
Nike turnaround measures faces major challenges
The Nike stock price has remained under pressure in the past few years, and the recent actions by the management are facing major headwinds.
The turnaround measures have included the announcement of Elliot Hill as the Chief Executive Officer.
At the core of the turnaround strategy is the “Win Now” strategy, which focuses on a deeper investment in the sports segment.
The strategy also includes approaches like product innovation, a change in how it markets its products, and cost discipline, including through job cuts.
The company also announced a major change in its business strategy and is now focusing more on wholesale sales.
As part of its emphasis on innovation, the company has made several product launches recently.
It launched Nike Mind, a new footwear platform that helps athletes prepare for competition.
It also launched Structure 26, a new stability shoe tailored towards athletes.
Nike stock price has remained under pressure despite these turnaround measures.
The most recent results showed that its revenue rose by 1% in the second quarter to over $12.4 billion, with its wholesale revenue soaring to $7.5 billion.
Its direct sales, which the company was focusing on recently, dropped by 8% to $4.6 billion.
The results also showed that the company’s gross margin continues shrinking, with the gross figure falling 300 basis points because of President Donald Trump’s tariffs and higher tax rate.
Wall Street analysts believe that the company’s business will remain under pressure in the coming quarters as the management has hinted that the turnaround measures will take time, especially now that competition from other brands is rising.
The average estimate among analysts is that its third-quarter revenue will come in at $11.2 billion, down by 0.40% from the same period a year earlier.
The annual revenue is expected to come in at $46.7 billion, up by just 0.56% from the last fiscal year. Also, the earnings-per-share (EPS) is expected to move from $2.16 to $1.59.
There are signs that Nike stock is still highly overvalued despite the ongoing crash.
For example, the company has a forward price-to-earnings (PE) ratio of 33, much higher than the sector median of 14.
Nike stock price technical analysis
NKE stock price chart |Source: TradingView
The weekly chart shows that the NKE stock price has crashed in the past few years. It has tumbled from a high of $185 in 2021 to the current $52.7.
The stock has remained below all moving averages, a sign that bears remain in control for now.
It has also dropped below the descending trendline that connects the highest swings in February and June 2024, and August 2025.
The stock is now attempting to move below the important support level at $52.25, its lowest level in March 2025.
Moving below that level will confirm more downside by invalidating the double-bottom pattern.
Such a drop will point to more downside, potentially to the key support level at $50 followed by the psychological level at $45.
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