Nike shares broke below $40 on Monday, reaching their lowest level since 2014 as investors continued to question the pace and financial cost of the sportswear company’s turnaround.
Nike (NYSE: NKE) fell as much as 3.2% to an intraday low near $39.41. The stock was trading around $39.49 at approximately 11:04 a.m. ET, down 3.1% from Friday’s $40.73 closing price and among the weakest performers in the Dow Jones Industrial Average.
The shares have declined approximately 38% in 2026, more than 5% in August and nearly 78% from their November 2021 record of $179.10.
Historical data indicate that Nike last traded around these levels in late 2014. Monday’s intraday move therefore represents its lowest price in almost 12 years, regardless of whether the shares recover above $40 before the closing bell. A new 12-year closing low, however, will depend on the final price.
Why Is Nike Stock Falling Today?
No new earnings release or major company announcement appeared to trigger Monday’s decline. The move extends an existing selloff tied to weak international demand, Nike’s China restructuring and concerns that its turnaround will take longer than investors previously expected.
The broader market also traded lower, with the Dow falling approximately 0.3% amid rising oil prices and renewed geopolitical tensions. Nike’s considerably larger decline suggests that company-specific concerns remained an additional source of pressure.
One important overhang is JPMorgan’s August 4 downgrade. The bank lowered Nike from Neutral to Underweight and reduced its price target from $47 to $40.
JPMorgan estimated that Nike’s plan to restrict partner-operated online sales in China could create an annual revenue headwind exceeding $1 billion. The bank also expects US store closures to affect North American comparisons into fiscal 2028 and described that year as more likely to be a period of stabilization than renewed growth.
Because the downgrade was issued nearly two weeks before Monday’s decline, it should be treated as part of the continuing bearish backdrop rather than a fresh catalyst. JPMorgan downgrade details
Nike’s Latest Results Show a Mixed Turnaround
Nike’s fiscal fourth-quarter results showed progress in some parts of the business but continued weakness elsewhere.
Revenue declined 1% on a reported basis to $11 billion and fell 4% on a currency-neutral basis. Nike Direct revenue dropped 7%, including a 12% decline in Nike Brand Digital and a 7% decrease at company-owned stores.
Greater China and Europe, the Middle East and Africa remained weak, partially offsetting growth in North America.
Wholesale revenue provided a brighter spot, increasing 4% on a reported basis to $6.6 billion. That improvement suggests Nike’s renewed focus on third-party retail relationships is producing some benefits.
Reported gross margin increased 890 basis points to 49.2%. However, Nike attributed approximately 900 basis points of that improvement to the expected recovery of tariffs imposed under the International Emergency Economic Powers Act. The reported margin increase therefore did not represent a comparable improvement in underlying operations. Nike’s fiscal 2026 results
NKEon Tracks Nike’s Decline
NKEon, Ondo Finance’s tokenized Nike product, was trading near $40.26 and was down approximately 3.2% over 24 hours at the time of review.
Although that price was higher than Nike’s $39.49 NYSE quote, the difference did not represent a bullish premium or delayed reaction. Ondo indicated that each NKEon token represented approximately 1.0191 Nike shares because the product incorporates reinvested dividends.
At an underlying Nike price of $39.49, that ratio implies a value of approximately $40.24 per token—almost identical to NKEon’s displayed price.
CoinMarketCap continued to show NKEon near $41.55 with approximately $360,000 in reported volume. That quote appeared delayed compared with Ondo’s primary market data and should not be used to conclude that NKEon had failed to reflect the equity selloff.
Nike’s break below $40 underscores continuing investor skepticism about its turnaround. However, a low absolute share price does not automatically mean the stock is undervalued. A sustainable recovery will require stronger evidence of improving demand in China, continued wholesale growth and healthier margins excluding one-time benefits.