Nike’s stock has been declining for four years, posing a dilemma for long-term shareholders. The company’s failed direct-to-customer strategy and waning interest in key markets have contributed to this decline. Despite some stabilization in North America, China remains a weak spot, with Nike experiencing a 20% drop in footwear sales in the region. The company’s over-dependence on China and the rise of patriotism among Chinese consumers are key factors. With a high forward P/E ratio and ongoing challenges in China, Nike’s stock is deemed too expensive and should be avoided.

Read more at Nasdaq: Down 57%, Is Nike Stock a Buy in 2026?