Why Nike Stock Plummeted 15% Earlier This Week -- but Is Now Rebounding

Now down 9% crossed the week, Nike initially declined connected Thursday aft the president's tariffs targeted 3 countries liable for the bulk of the company's manufacturing.

Here's what happened earlier this week and wherefore Nike's shares person rallied somewhat today.

Vietnam, Indonesia, and China received tariffs of 46%, 32%, and 34% from the United States connected Wednesday, sending Nike's banal into a tailspin connected Thursday greeting erstwhile the markets opened.

Since these 3 countries manufacture 95% of Nike-branded footwear, it is casual to recognize the market's archetypal absorption to the news. Stifel expert Jim Duffy estimated that these higher costs could effect successful $1.69 worthy of harm to Nike's net per share.

However, the marketplace has taken a somewhat much optimistic stance connected Nike contiguous aft Vietnam stated it wanted to marque a woody with the United States to get its tariffs backmost down to 0%. Responsible for 50% of Nike's footwear and 28% of its apparel, plants successful Vietnam relationship for the bulk of the company's manufacturing -- which would marque this imaginable woody a suspiration of alleviation for investors.

While Nike banal volition proceed to look volatility arsenic the marketplace waits for this imaginable Vietnam woody and further fallout from the caller tariffs, the banal present trades astatine its lowest price-to-sales ratio since 2009.

Nike could beryllium an absorbing banal for risk-tolerant worth investors to show arsenic it remains the astir influential footwear and apparel marque successful the world, particularly among Gen Z shoppers.

Before you bargain banal successful Nike, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Nike wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider when Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $623,941!*

Now, it’s worthy noting Stock Advisor’s full mean instrumentality is 781% — a market-crushing outperformance compared to 156% for the S&P 500. Don’t miss retired connected the latest apical 10 list, disposable erstwhile you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns arsenic of April 1, 2025