Nike Stock Plunges to 7-Year Low: Watch These Price Levels!

Ladies and gentlemen, buckle up! Nike (NKE) is in the hot seat today, and it's not just because of the sneakers. The stock is plummeting like a meteor, down 13% in intraday trading on April 4, 2025, thanks to President Donald Trump's latest tariff bombshell. The sneaker giant is feeling the heat as the U.S. slaps a 46% tariff on Vietnamese goods, where half of Nike's footwear is made. This is a game-changer, folks, and you need to pay attention!

First things first, let's talk about the elephant in the room: the tariffs. Vietnam, Indonesia, and Cambodia are Nike's manufacturing powerhouses, churning out 50%, 27%, and 18% of its footwear, respectively. With tariffs of 46%, 32%, and 49% on these countries, Nike's supply chain is about to get a lot more expensive. Morgan Stanley's Alex Straton nailed it: "Potential incremental Vietnam tariffs appear under-appreciated by investors, & could prove a notable headwind given significant sourcing exposure across our coverage."

Now, let's talk about the stock. Nike's shares are tumbling like a house of cards in a hurricane. The stock is down 13% today, and it's not just the tariffs. The company's Q3 earnings report was a mixed bag, with revenue down 9% and earnings per share (EPS) at 54 cents, beating estimates but still down from last year. But here's the kicker: Nike warned about a rough Q4, citing declining consumer confidence and Trump's tariffs on China. This is a double whammy, folks, and the market is not happy.



So, what do you do now? First, watch these price levels like a hawk. If Nike breaks below $66.50, it's a red flag. The stock is already down 34% over the past 12 months, and a break below this level could signal more pain ahead. But if it holds above $66.50, there's a chance it could bounce back. Remember, the market hates uncertainty, and Nike is swimming in it right now.

Second, keep an eye on the broader market. The S&P 500 and Nasdaq Composite are in correction territory, and the Dow Jones Industrial Average is just below that level. The market is on edge, and Nike's woes are just adding fuel to the fire. If the market continues to sell off, Nike could be in for a rough ride.

Third, don't forget about the other players in the game. Skechers (SKX), Allbirds (BIRD), and On Holding (ONON) are all feeling the heat from the tariffs, with shares down 22%, 13%, and 15%, respectively. This is a sector-wide issue, folks, and it's not going away anytime soon.

Finally, stay tuned for more updates. The tariff situation is fluid, and things could change in a heartbeat. But one thing is for sure: Nike is in the eye of the storm, and it's going to be a bumpy ride. So, buckle up, folks, and get ready for the roller coaster!