Nike Inc Stock Price (NKE)

What are Nike stocks?

Nike was founded in 1964 under its original moniker Blue Ribbon Sports (BRS) by Philip Knight, a University of Oregon track athlete, and his coach Bill Bowerman. Knight and Bowerman started off selling shoes by Japanese brand, Onitsuka Tiger (now known as ASICS). The pair opened their first retail store in Santa Monica in 1966 and the company steadily grew.

However, in 1971, the relationship with Onitsuka Tiger came to an end. This led to a rebrand for BRS. The company adopted the name Nike, named after the Greek goddess of victory. The 'Swoosh' logo, which is now one of the most recognisable in the world, was used on the first pieces of footwear made exclusively by the brand.

Bowerman's experiments with footwear led to the creation of the first 'waffle sole', so-called because he had invented an entirely new sole by pouring rubber into his wife's waffle iron.

In 1972, Bowerman applied for a patent for his design. His vision was for it to be an athletic shoe featuring studs that could provide grip on artificial turf. Nike began producing the 'waffle' trainers shortly after Bowerman's patent was granted in 1974.

Today, the sportswear brand is headquartered near Beaverton, Oregon in the US. As of 2023, it employs over 83,000 people worldwide. It sells its products to consumers both online and in-store, as well as through independent distributors and retailers.

Where once it was a fledgling business operating out of the trunk of Philip Knight's car, it is now the largest supplier of athletic footwear and clothing in the world, in terms of revenue. The company's revenues were over $46.7 billion in 2022 and over $51.2 billion in 2023.

Where are Nike stocks traded?

Nike has two stock classes: Class A, which aren't on the open market, and Class B, which are standard shares available to investors. Class A shareholders elect nine of the 12 Nike board members, while holders of Class B shares elect the other three. Class A Nike shares are convertible into Class B shares on a 1-for-1 basis. Class B NKE shares are traded on the New York Stock Exchange. Stocks are also traded as a component on the Dow Jones Industrial Average (DJIA), S&P 100 and S&P 500.

Nike has a dividend program. The annual dividend rate has increased since 2004 and quarterly dividends are paid on Nike common stock. Between December 2022 and September 2023, NKE stock dividends were priced at $0.34 per share.

Historical performance of Nike stocks

Nike stock went public in December 1980 at $22 per share. Initial performance was positive.  Then, from November 1982 to December 1984, Nike stock dropped in value by 73%. This was largely down to changes in fashion trends when sports shoes fell out of favour.

However, in 1984 the company signed US basketball's upcoming star, Michael Jordan, to boost its promotional activity. Air Jordan 1 trainers became the must-have sneakers of 1985 as Nike sold over $70 million worth of Air Jordans within two months of their release. Shares of Nike traded at a high split-adjusted price of $0.14 per share in April 1985.

The partnership with Jordan paved the way for Nike's financial success. Stock performed strongly through the 1990s and early 2000s until Jordan ended his basketball career in 2003.

NKE stock faced challenges when there were supply chain issues in 2004, and the 2008 financial crash saw stock fall by 29% in price. However, it recovered to pre-crash levels by early 2010.

In the late 2010s and early 2020s, the brand's stock reached new heights. The company adapted to changing consumer preferences and the pandemic accelerated the shift to online shopping. Nike's digital presence and investments in technology further boosted its stock price.

The all-time high Nike stock closing price was $173.68 on November 5, 2021, and the average stock price for the year to October 2023 was $111.19.

What influences the price of Nike Inc stock?

The price of Nike stocks is influenced by a range of factors, including:

• Economic conditions: Economic factors, such as the financial crisis in 2008, can affect the price of Nike stock. Recessions and rising inflation can lower people's disposal spending on products such as trainers which can impact Nike share prices.
• Global events: Political instability or trade issues can impact financial markets and, ultimately, stock prices.
• Company performance: A company's financial performance is a fundamental driver of stock prices. If Nike is performing well, this is reflected in the value of its stocks.

There are some industry-specific factors to account for too, such as:

• Supply chain and production: Disruptions in the global supply chain or manufacturing issues can affect Nike's ability to deliver products to the market. Such disruptions can lead to increased costs or supply shortages, impacting stock price.
• Competition: The sportswear industry is competitive, with rivals such as Adidas, Under Armour and Puma. The level of competition and Nike's market share relative to its competitors can affect stock performance.

How can I trade NKE stocks?

It's possible to trade NKE stock through financial derivatives. Derivatives allow you to trade in either market direction, speculating on whether the price will increase or decrease. They also give you the chance to enter or exit a trade without owning the underlying asset.

There are different methods of trading with derivatives:

• CFDs: With contracts for difference (CFDs), you buy or sell a contract based on whether you think the value will increase or decrease. You will either make a profit or loss relative to the difference in Nike's share price between the opening and closing trades.
• Spread betting: The 'spread' is the difference between the buy and sell prices. The result of your trade depends on your prediction and the market direction. You can either go long or short, with any profit or loss you make determined per point of price movement.

Leverage

Leverage allows you to increase your market exposure when trading via derivatives. Open a position with a smaller deposit and you'll get more for less when you profit. However, using leverage can enhance any losses, so it's important to be aware of this risk before you enter a trade using this option.

How to invest in NKE stock

Investors can purchase Nike stocks. Owning shares in the company gives investors a share of the company's ownership and potential profit.

Buying stocks can be a more profitable, longer-term choice than trading the market via derivatives. By making a purchase, traders can ride out any market changes without feeling under pressure to move quickly.

But investors could find that the opportunity to profit is limited. This is because the only way to see a return on investment is if the stock's value rises. If the market enters a prolonged bearish period or share prices fall suddenly, investors who own stocks and shares in Nike might be at risk of making a loss.

Advantages of trading Nike stocks

• Leverage: When you use leverage, you can open a position with a smaller deposit. This means you could potentially maximise your capital. However, losses can also be magnified should your trade go against your prediction.
• Market exposure: Nike is a longstanding brand on the New York Stock Exchange, so trading its shares means you'll gain exposure across a major market.
• Trade both ways: Trading NKE stocks via financial derivatives allows you to take advantage of both bullish and bearish markets.

Disadvantages of NKE stocks

• Leverage risk: Leverage can leave you at risk of losses or increased profits.
• Market fluctuations: Even with detailed technical analysis, markets can occasionally move in unexpected ways. NKE share prices for today may appear to be stable, but they could change tomorrow if something unexpected occurs.
• Limited portfolio: Trading just one company's stock restricts your portfolio and can leave you exposed to sudden shifts in NKE stock price

How to start trading NKE stocks with Tradu

1. Open an account: Open a Tradu account online to start trading.
2. Build a strategy: Establish your risk tolerance levels, set trading goals and choose your preferred markets.
3. Research: Look at Nike's stock history and apply technical indicators to maximise your profit-making opportunities.
4. Open your position: Use risk-management tools to help you limit losses when you place your trade, then monitor before closing your position.
5. Use trading resources: Our insights may help you discover new trading opportunities.
6. Diversify your portfolio: Grow your trading portfolio with a range of other markets including forex, indices, and commodities.