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finance.yahoo.comOCT 73 min read$NKE

Jim Cramer Is Staying Away From NIKE (NKE) Stock After Losing Money

Jim Cramer expressed reluctance to invest in NIKE (NKE) after previous losses. NIKE reported a 4% revenue decline in Q1 2027, but gross margins improved. The company faces challenges in China and direct sales, with a restructuring program expected to save $2.5B by 2031. NIKE trades at 16.2x trailing and 24.4x forward earnings. Hedge fund ownership declined, and short interest is 8.98%.

Original reporting
finance.yahoo.com
Published Oct 7, 2026, 9:08 AM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Oct 7, 2026, 9:19 AM UTC. Informational, not investment advice.
How this was made
AlphAI summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
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Jim Cramer Is Staying Away From NIKE (NKE) Stock After Losing Money — source image
Source · finance.yahoo.com
Decision brief

The 30-second read

$NKEBearishLow
01

Why it matters

The earnings miss and lowered guidance suggest near‑term price pressure, though the cost‑saving program could be a catalyst later.

02

Market read

Nike's earnings and guidance are material for the consumer discretionary sector and can move market sentiment.

03

What to watch

Short interest at 8.98% and hedge fund holdings decline may amplify price moves.

Relevance 4/10Novelty 4/10Timing: today

Background

Jim Cramer discussed his past loss on Nike, but the core of the article is Nike's FY27 Q1 earnings release and outlook.

Company-level read

Ticker impact

$NKEBearishHigh confidence
Context

Nike reported FY27 Q1 revenue down 4% YoY to $11.2B, margin up 60bps, and gave guidance for revenue decline and EPS $1.15‑$1.35, indicating weaker outlook.

Expected impact

likely downside as market prices in lower revenue and earnings outlook

Evidence & confidence

Revenue decline, especially in Greater China, and guidance below expectations suggest earnings pressure.

Market effects

Sector

Weakness in consumer discretionary apparel may weigh on peers and related supply chains.

Regional

Greater China slowdown could affect other brands with exposure to that market.

Global

Nike's size means its earnings miss can influence broader market sentiment on consumer spending.

Counterpoint

What could challenge this read

If the turnaround program delivers $2.5B savings, the stock could be undervalued at current multiples.

Key entities

  • company
    Nike, Inc.

    US‑listed apparel giant reporting FY27 Q1 results.

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