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Nike - AI Stock Analysis

Analysis generated February 25, 2025

Nike, Inc. is a global leader in the design, manufacturing, and marketing of athletic footwear, apparel, equipment, and accessories. Headquartered in Beaverton, Oregon, Nike continues to be a dominant player in the sports and fitness market. The company enjoys a robust brand presence and strong consumer loyalty driven by innovative products and strategic endorsements from top athletes globally.

Fundamental Analysis

Analyzing Nike's quarterly performance:
Revenue for the last quarter was $12.4 billion, reflecting an increase of 6.54% from the previous quarter. This improvement signifies a potential rebound, showing positive short-term growth. However, the revenue is down 7.72% compared to the same quarter last year, which raises a flag about declining sales year-over-year.

The net income last quarter stood at $1.16 billion, showcasing a 10.66% rise from the previous quarter. While encouraging in the short term, this figure is a notable decline of 26.30% from the same period last year, highlighting challenges in profitability.

EBITDA for the last quarter was $1.17 billion, a concerning decrease of 16.37% from the prior quarter, and a significant drop of 42.01% year-over-year. This suggests issues in maintaining operational efficiency and profitability margins.

The current Price-to-Earnings (P/E) ratio is 23.61, which indicates that Nike's stock is fairly valued within its historical context. It's neither undervalued nor overvalued based on this metric.

Recent insider selling activity could be a bearish signal, indicating that those closest to the company foresee potential headwinds ahead.

Technical Analysis

Today's stock price is $80.28, an increase of 9.12% from a month ago, showcasing a short-term positive trend. However, this price is 21.88% lower than a year ago, raising concerns about a longer-term downtrend.

The stock is experiencing a bullish sentiment as indicated by an upward trend in its Simple Moving Average (SMA10), which is currently 76.77 up from the previous 76.05.

An RSI (Relative Strength Index) of 36.2 indicates a neutral condition, suggesting that the stock is neither overbought nor oversold at this time.

Alternative Data Analysis

Employment data shows Nike has 1,056 open positions, with stability over the recent months implying consistent operational expectations. However, employee sentiment towards the business outlook remains neutral, reflecting ambivalence among the internal workforce.

Customer acquisition data indicates a decline, with an estimated 110 million website visits decreasing by 9% over recent months. Additionally, estimated mobile app downloads are down by 12% to 46,000 daily, signals of potential customer disengagement.

Customer engagement metrics also show a plateau. Despite a considerable social media presence, Nike's Instagram followers (302 million) and Twitter followers (10 million) have seen 0% growth, indicating stagnation in consumer interest.

AltIndex's AI score for Nike is 28, denoting a strong sell signal, reflecting combined data trends from fundamental, technical, and alternative analysis.

Conclusion

In summary, Nike demonstrates short-term revenue growth and profitability improvements, yet faces significant long-term headwinds, as evidenced by declining year-over-year financial performance. Current technical indicators suggest a tentative bullish trend. However, stagnant employee sentiment, declining customer acquisition and engagement, coupled with a strong sell signal from AI analytics, warrant caution. Investors should weigh the positive short-term signals against long-term risks and declining fundamental and alternative data trends in making investment decisions on Nike's stock.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.