Nike stock has never been more hated by the market
Nike (NKE) faces record short interest at 87 million shares, up from 55 million, with short interest percentage rising from under 3% to over 7%. Analysts cite concerns over revenue deceleration and retailer cancellations. The stock is down 27% since the last earnings report and 55% from its year-ago peak. Nike was removed from the S&P 100 index, and Kylian Mbappé ended his partnership with the company.
How this was made
The 30-second read
Why it matters
The surge in short interest and weak guidance suggest continued downside, but a surprise positive earnings beat could trigger a short‑squeeze.
Market read
Nike's bearish sentiment may influence consumer‑discretionary sector sentiment and index fund allocations.
What to watch
Potential upside from upcoming product launches and international market recovery not reflected in current short‑interest data.
Background
Nike's stock has fallen ~27% since its last earnings, now near a 52‑week low, with a recent loss of a major athlete endorsement and removal from the S&P 100.
Ticker impact
Short interest rose to 87 million shares (over 7% of float) and guidance shows revenue deceleration, indicating heightened bearish pressure.
likely pressure as the market prices in the short‑interest buildup and revenue outlook downgrade
Short sellers hold $1.4 bn paper gains; guidance signals continued revenue decline, prompting further selling.
Market effects
Apparel and consumer discretionary may see broader short‑selling pressure if Nike weakness spreads.
U.S. equities could dip as Nike is a large‑cap component of major indices.
Nike's removal from the S&P 100 may affect index‑fund flows globally.
Counterpoint
If Nike's new CFO can accelerate turnaround, the stock may rebound sharply from oversold levels.
Key entities
- companyNike
U.S.-listed apparel giant (ticker NKE).
- research_firmS3 Partners
Provider of the short‑interest data.
