Nike valuation approaches potential floor
The speakers discussed Nike as a potential value play or take-private candidate after a massive drawdown reduced its market cap to around $60 billion.
The argument
Despite severe management missteps and a challenging stock chart, the hosts argued that the brand's cultural relevance remains intact among youth and the equity valuation floor may not be much lower than current levels.
The thesis, stress-tested
✓ What validates it
- ✓Stabilization of quarterly sales margins
- ✓Rumors or announcements of private equity or sovereign wealth interest
- ✓Management changes or strategic turnaround plans
▸ Risks discussed
- ▸Management execution errors
- ▸Loss of brand relevance among younger demographics
- ▸Continued downward momentum in the stock price
Hear it yourself
"days, and I'm sure Elon's feeling that too. So that that's I think that's the story with here in the chat, John Carlos says, where everyone's waiting for Tesla to merge with SpaceX Yeah. Which, of course, is coming. And I have predicted all of these things that have happened. You have been saying that for a while. And it will and it will. You know, I mean, obviously, you know, we do this every week. We spend so much time talking about the the swings of the market. Stocks go up, stocks go down. Meta, the last month reported, the stock was at $668, whereas today, $670."
06:50
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE