Nike Inc. Shares Plummet on Disappointing Earnings Report

Shares of Nike Inc. have experienced a significant decline, dropping 12.9% to reach a one-month low in premarket trading on Friday. This sharp decrease in stock value marks the largest one-day selloff the company has seen in 26 years.

As the leading provider of athletic apparel and accessories, Nike's stock plummeted, making it the worst performer among the Dow Jones Industrial Average and the S&P 500 ahead of the market's opening. The negative impact on the stock's implied price would reduce the Dow's overall value by approximately 104 points, while Dow futures also dropped by 106 points (0.3%).

This potential decline in stock value is a cause for concern, as it could result in Nike experiencing its largest one-day decline since May 29, 1997, when it sank by 13.5%. Despite this setback, analyst Jim Duffy from Stifel maintains his buy recommendation on the stock. However, he has adjusted his price target from $135 to $129 due to recent "uninspiring" sales trends. Duffy explains that while Nike's business model remains impressive, slower growth rates and lower estimates are impacting its valuation.

Throughout the year up until Thursday, Nike's stock had gained 4.7%, while the Dow had rallied by 12.8%. Despite the disappointing earnings report, it is important to remember that Nike continues to hold a significant market presence and remains a major player in the athletic apparel industry.