Nike stock collapses to 12 year low

@nicholas_crown

2.3M followers · usually 4.7K views a post

Views

65.8K

Likes

1.9K

Comments

50

Shares

104

SoundTikTok sound · original sound - nicholas_crown

Promoted product

Crown Macro Letter

Weekly global investing insights with a Wall Street edge.

4 videos

Why it worked

The video leverages a timely and significant financial event (Nike's stock drop) combined with a critical analysis of accounting practices and leadership issues, making it relevant and engaging for an audience interested in market insights.

Summary

The video discusses Nike's recent stock performance, highlighting concerns about their financial reporting and leadership. The creator suggests that Nike's stock has fallen due to market realization of accounting irregularities and a lack of clear business focus, exacerbated by high interest rates.

Structure

1Introduction of Nike's stock drop and personal anecdote
2Critique of Nike's accounting practices and revenue reporting
3Announcement of CFO and CAO resignations
4Analysis of Nike's business confusion and market perception

Original caption

Nike just hit an 12-year low 7 weeks after its biggest profit beat ever. In June we broke down that "blowout": strip the one-time tariff recovery and the beat was 7 cents, not 59. The stock has sold off 12% since. Accounting entries can rent a rally. Only revenue can own one. Click the link in my profile for the names we’re questioning beyond Nike.

More from @nicholas_crown

Product placement

Nike (ACTS): The company whose stock performance and financial reporting are discussed. Removing it would change the video's topic. Nike (APPEARS): Mentioned in the on-screen text and the creator's caption. Removing it would change the video's topic.

Call to action

Comment "LETTER" for our full market analysis

On-screen text

Nike stock collapses to 12 year low

Transcript

I wear Nike's in the gym to lift weights, but I didn't realize that putting these things on my feet made me complicit in one of the most absurd, borderline accounting fr, I don't know if I wanna say the full word, that I've ever seen in the market. Because Nike took $986 million of tariffs that it might get back from the US government and they said that this was revenue. In fact, it's 52 cents of their 72 cent earnings per share report. I made a video about this, and since I made the video, the stock's down 12% because the rest of the market is realizing that something's funky here. And if you think this couldn't get worse, it just did. Because today is the day that the chief financial officer also becomes the chief accounting officer because the chief accounting officer tendered her resignation 20 days after signing this Fugazi report. What I see here is a company that has no financial leadership. They're confused at whether they're really good at accounting or really good at making shoes. And right now, the market wants to know that they're still in the shoe business and it's crickets. To add one more wrinkle to this total freak show, interest rates are high and sticky. This deeply impacts Nike's business. We love finding weak businesses to take advantage of, just like Nike, because good shorts are very hard to find in this market. We publish our research that goes out to 70,000 subscribers every single week. You can plug into what we're trading. We've got a really interesting trade on right now. It is not Nike, but it smells a lot like it. If you want to see what we're cooking, just head to my profile and click the link. Comment "LETTER" for our full market analysis. Educational only. Based on hypothetical model results, not actual trading. Subject to assumptions and limitations. Not indicative of future results. Not investment advice or a recommendation to buy or sell any security or futures contract.