Nike's New CEO: Analysts Say Don't Chase Pop

Why Investors Should Focus on the Long Term

Nike's stock has taken a hit since Mark Parker announced his retirement as CEO. Some analysts believe this is a buying opportunity, while others caution against chasing the pop. They argue that Nike's new CEO, John Donahoe, faces a number of challenges, including slowing sales in China, rising costs, and increased competition.

Donahoe is a well-respected executive with a strong track record at eBay and PayPal. However, he has no experience in the athletic footwear and apparel industry. This could be a concern for investors, who may worry that he will not be able to effectively lead Nike.

Challenges Facing Nike's New CEO

In addition to the challenges facing Nike's business, Donahoe will also have to deal with a number of internal issues. These include:

• Nike's relationship with Colin Kaepernick
• The company's handling of sexual harassment allegations
• Nike's environmental record

These issues have damaged Nike's reputation and could continue to weigh on the company's performance.

Should Investors Buy Nike Stock?

Despite the challenges facing Nike, some analysts believe that the company's stock is a good value. They argue that Nike is a well-established brand with a strong competitive position. They also believe that Donahoe is a capable leader who can help Nike overcome its challenges.

However, other analysts are more cautious. They believe that Nike's stock is overvalued and that there are better investment opportunities available. They also worry that Donahoe may not be the right person to lead Nike at this time.

Conclusion

Ultimately, the decision of whether or not to buy Nike stock is a personal one. Investors should carefully consider the challenges facing the company and Donahoe's ability to overcome them before making a decision. They should also consult with a financial advisor to get personalized advice.