Nike’s nightmare collapse deepens as shares crash 78% from highs — critics say brand went ‘woke’ and now it’s broke

Nike, once a powerhouse in sports apparel and sneakers, has seen its fortunes decline dramatically, with its shares crashing 78% from their peak in late 2021. The once inseparable brand now faces a tough road as investors question the effectiveness of its recent marketing strategies and cultural positioning. The phrase "go woke, go broke" has resurfaced, with critics arguing that the brand's alignment with social issues has now cost it dearly.

The challenges faced by Nike are multifaceted, encompassing changing consumer preferences, heightened competition, supply chain issues, and a shift toward direct-to-consumer sales. Moreover, the brand's presence in China has become a significant concern, with revenue from the region falling 12% in the latest quarter.

Despite these obstacles, Nike managed to exceed Wall Street's expectations in its most recent quarterly results. However, analysts remain skeptical about the company's ability to turn the tide. JPMorgan recently downgraded Nike's stock from Neutral to Underweight, with analyst Matthew Boss warning that the company's recent "Win Now" decisions will continue to impact its performance in the second half of 2027 and beyond.

While Nike's stock currently hovers near a 12-year low, there are still some who believe the brand has not yet reached its bottom. Bernstein analyst Aneesha Sherman has reaffirmed a Buy rating on Nike stock, albeit with a lower price target of $68, representing approximately 70% upside from today's price. Despite this cautious optimism, the Nike saga serves as a stark reminder that even the most prominent brands can falter, emphasizing the importance of diversifying one's investment portfolio to mitigate risk during uncertain times.