Why did nke stock go down?

Nike's stock decline can be attributed to several factors:

1. Earnings and Guidance: Nike's Q4 revenue missed analysts' estimates, and the company updated its fiscal 2025 guidance, which led to a drop in the stock price. The company reported a 2% revenue decline in the fourth quarter and is expecting a 10% sales drop in the first half of fiscal year 2025.
2. Sales Outlook: The sales outlook for the rest of the fiscal year remains challenging, with macro headwinds and a slowdown in key markets such as Greater China and EMEA. Additionally, Nike's classic brands are slowing down, and the company faces challenges in the online marketplace.
3. Competitive Landscape: Rising competition from upstart running brands like Hoka and On, as well as strategy missteps, has impacted Nike's sales growth. The company's efforts to change its distribution strategy have also backfired, hurting sales.
4. Stock Market Reaction: The stock market overreacts to news, and Nike's underwhelming guidance has led to a significant price drop. The stock's volatility is evident, with three moves greater than 5% over the last year.
5. Investor Sentiment: The long-term outlook for Nike remains bright, with growth and cash flow expected to entice investors back into the market. However, the short-term challenges and the need for a rebound are likely contributing to investor uncertainty and the stock's decline.

In summary, Nike's stock decline is a result of a combination of company-specific factors such as sales performance, competitive challenges, and strategic decisions, as well as broader market reactions to the news and investor sentiment.