NKE
🏭 Potential tariffs between the US and Vietnam are mentioned as an additional headwind for Nike, though considered secondary to deeper issues.
🧠 The core problem identified is Nike losing brand relevance and mindshare, particularly among consumers considering alternatives like On Running.
⚠️ The stock is viewed as risky, trading at a high multiple (25x P/E) for what’s considered a turnaround story that needs to prove it can regain its footing against competitors.
@bernardodegarcia:
“What do you think of Nike considering the possible US tariff agreement with Vietnam? I think that’s just another problem for a company that already has enough problems. The main problem with Nike for me… the tariffs are like a story they keep telling me… it’s like a TV series, every day they tell me new stories and well, we move forward, but I don’t take them seriously… I don’t take this guy seriously, he’s doing this to negotiate, and when he gets what he wants, he’ll turn around… I don’t take it seriously. And regarding Nike, I think… Nike, I’ll tell you, the least of its problems are the tariffs. But God knows. For me, the biggest problem with Nike is that it’s not in the mind of who it needs to be. Right now, I’m looking to buy other sneakers, and Nike didn’t even cross my mind. I have two or three brands in mind, but I don’t have Nike. And my wife, who is a huge Nike fan, wants to try On. You know what happens? I think when she buys the On, she won’t want another sneaker because I suppose Nike fell asleep on its laurels and has lost a lot in R&D, I don’t know… I think Nike still at 25 times earnings, being a company that has to prove it’s still there, I think it’s a bit risky. That it could work? God knows, but I see it as too risky for my taste. Although they are faltering, for example, Nike with the labor issues in Vietnam, is it advisable to enter it or any of the seven big ones? I would tell you again, the seven big ones are safer than Nike because the seven big ones fundamentally continue to function fantastically.”
Watch the exact part of the video where @bernardodegarcia talks about Nike here:
Watch the video on YouTube
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