Nike Shares Plunge as Investor Confidence Evaporates

A massive sell-off in Nike stock has erased approximately $12 billion in market capitalization within just days, signaling a crisis of confidence in the sportswear giant. The relentless downward pressure has even seasoned investors concerned as the equity continues its search for a bottom amid persistent selling.

Nike's stock performance has taken on almost historic proportions with eight consecutive trading days of losses. The 11 percent decline during this period translated to the massive $12 billion reduction in the company's market value. Each session told the same story: overwhelming selling pressure, declining share prices, and virtually no buyer support to stem the tide.

The contrast with broader market performance could not be more striking. While the S&P 500 has posted solid gains of 15.1 percent since the beginning of the year, Nike shares have fallen dramatically, down 17.7 percent over the same period. This former market leader has transformed into one of the index's most significant underperformers.

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Should investors sell immediately? Or is it worth buying Nike?

Technical Indicators Signal Further Weakness

The technical picture remains decidedly negative, with Nike shares entrenched in a clear downtrend showing no signs of stabilization. Even on days when broader markets advanced, the company's equity continued its downward trajectory unabated. This persistent underperformance suggests fundamental concerns rather than temporary market sentiment.

Sustained selling pressure indicates deeply shaken investor confidence. Active traders have added the stock to their watchlists—not as a potential buying opportunity, but as a cautionary case study. The critical question market participants now face is identifying the price level that might attract value investors and bottom-fishers back into the position.

With no apparent support levels in sight and consistent daily declines, the path of least resistance remains downward. The absence of any meaningful recovery attempts suggests that market participants have shifted their focus from whether the stock will find a floor to how much further it might fall.