Nike's fallen on tough times. Now the stock has hit a death cross.

By Steve Goldstein

Nike's stock has been swooshing lower this year.

Nike's stock has entered a pessimistic technical formation called a "death cross," a sign of the tough times the sneaker maker has encountered.

A death cross occurs when the 50-day average of the stock price falls below the 200-day. It can signal a prolonged drop.

Nike's stock (NKE) actually rose Wednesday, but it's down 17% this year, a period in which the S&P 500 SPX has gained 13%.

Even with the decline, it's still more expensive than the typical stock, trading at 30.6 times next 12 month earnings, according to FactSet.

Nike is a victim of tariffs - the company estimated tariffs are now, on an annualized basis, a $1.5 billion drag. It's also been heavily discounting and seen revenue at its Converse brand tumble 27% during its most recent fiscal first quarter.

It's also struggling in China, a key market, where revenue fell 10% last quarter.

Even JPMorgan, which has an overweight rating on Nike, says Wall Street earnings projections for the company's fiscal second half are 25% too high.

Elliott Hill, the company's CEO, said he's focused on improving innovation as well as selling through traditional retailers to boost sales growth.

-Steve Goldstein

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11-20-25 0502ET