I finally bought NKE… but not because it looks “cheap”
u/NoahReed14 ·
Reddit — r/ValueInvesting
· April 03, 2026 at 19:09
· ⬆ 19 pts
· 💬 116 comments
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Summary
The author, u/NoahReed14, has started a position in Nike (NKE) after its sharp price decline from $60+ to the low $40s.
The thesis is not based on traditional value metrics but on the aggressive repricing of a strong brand, aiming for slow accumulation as sentiment appears washed out.
Quality assessment: This is speculation based on price action and brand resilience, not well-researched fundamental due diligence.
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I ended up starting a position in NKE recently, but honestly not for the usual “low P/E” reason everyone is talking about.
What stood out to me more was the price action itself. The stock dropped from around **$60+ to low $40s in a very short time**, which is a pretty aggressive repricing for a company of this size. That kind of move usually means expectations got reset hard.
I’m not expecting a quick bounce. If anything, this might take quarters to play out. But historically, buying strong brands when sentiment is washed out has worked better than chasing them when everything looks perfect.
The risk is obvious though. Growth is slowing, competition is real, and margins are under pressure. This isn’t a “no brainer” buy.
For me it’s more of a slow accumulation idea than a trade.
Curious if others are actually buying here or just watching from the sidelines waiting for confirmation.
Not financial advice.
NKE stock dropped from ~$60+ to low $40s rapidly, indicating a hard reset of market expectations. Historically, buying strong brands during periods of extreme negative sentiment has been a successful strategy. The trade is a slow accumulation idea, betting on a multi-quarter recovery of the brand's value and stock price, not a quick bounce. Slowing growth, intense competition, and sustained margin pressure could prevent a recovery.