Nike has lost its moat. The stock is down 75% from its highs and the fundamentals of the business are not good — the company is not what it used to be and may never regain its former dominance.
Michael and Ben discuss Nike's dramatic decline, noting the stock is at 2014 levels, its fundamentals are poor, and it risks joining once-dominant brands like MTV and Sports Illustrated in irrelevance. ✦ AI generated
Michael · The Compound · 2026-07-22 · original ↗
starts at this moment · 18:30
I can't believe that Nike lost its moat. Nike is down 75% from the highs. I think it's at the same price it was at 2014. The fundamentals of Nike's business sucks. It's not doing well, right? Yeah, they kind of blew it. Put the stock price aside. I don't think we're going to be talking about how Nike regained its mojo.
verbatim transcript · starts at 18:30
18:30believe that Nike lost its moat so Nike is down 75% from the highs I think it's at the same price it was at 2014 and I'm my my like number one rule of thumb for stock picking never invest in fads like Pelaton was a fad I I sniff that one out pretty like every every exercise workout thing is a fad. When's the last time you used your Pelaton? 5
18:54years ago. >> Four years ago. >> No, no, no. Uh three years ago. >> Okay. I can't believe mine I bought it in April of 2020. It's still working. I used it last night. Still going strong. I'm still >> I did do I did do a Pelaton exercise class 5 weeks ago. Not to break. >> Okay. Good job. But it seemed like Nike looks like a lot of these other fads.
19:14So, Lululemon is down 80%. Under Armour is down 84%. Gap is down 62%. It's funny. Gap still never recovered its price from the dot bubble. >> And it never will come back few times. I I think I think Nike might be toast. And when I say toast, Nike is still um my number one brand and there's not even anything close. Like whenever I buy any sports attire, I I don't buy Adidas.
19:37I don't I mean I buy, but whatever. >> It is for me too. Nike is still my number one brand. That maybe that's why I'm so shocked by this. It's It seems like it's done, >> but >> based on the stock market, >> but um I mean the numbers suck. >> Like the numbers are not good. Uh >> you know, I'm a big gaps get filled guy
19:57and there was a big juicy gap up at 52 that I think probably will get filled, but I don't know. Is so Nike's at $43. Is the stock ever going to trade at $90 ever again? I don't know. I don't think so. I don't I don't think that in two or three years from now we're going to be talking about an amazing >> Put the stock price aside. I don't think
20:17we're going to be talking about how Nike regained its mojo. >> There there are all these brands from our youth that just don't really exist anymore. MTV was a huge brand we grew up with. Sports Illustrated, >> the biggest it feels like Nike is going to be put in that dust bin for and it's I can't believe it. I really This really does shock me. >> Well, does it's not going away. Nike