Mbappe signed with ONON today and in pre market ONON was up 7 % and NKE down 1 %. As soon as the market opened for general trading, ONON went red and NKE flat.
Essentially, the market is saying ONON needs to spend a lot of money on becoming a well recognized brand in football/soccer while NKE has the freedom to stay clear of those expenses because Nike is already an incredibly known brand.
It further shows signs that Nike is very close to its bottom. The market is red today and Nike stock is flat. Investors are patiently awaiting earnings on October 1. If earnings are bad I’m sure the stock will drop 10 % in extended hours but then recover during the day and close flat or near it. If earnings are good then Nike stock is likely a coiled spring that will jump 10 % on the day after earnings and then steadily climb in the next one-two months similarly to Target stock.
I think everyone is kinda convinced Nike will never die. And Adidas won’t either. These brands have been around for decades and they’re like Microsoft and Apple. A few years ago Adidas stock was incredibly beaten down. Now it’s Nike’s turn. Buy and hold for safe returns.