Nike’s stock has just reached its all-time high. But what would it mean for the company and its trades? And what about the future?
On Wednesday, the sport footwear and apparel brand has its stock surged up to 5.5%. It brought the stock even higher than its previous peak at $90 per share. In addition, Nike has its stock rose up 18% in total this year.
There are a few reasons of Nike’s stock continuous rise. First of all, the company claimed that its product innovation and investment on the e-commerce section are the main reason.
Indeed, Nike’s performance in the digital sales improved so well this year. Forbes reported that the brand’s digital sale rose up to 42% year on year. Nike has invested a lot in apps and e-commerce platforms all over the world, the past year.
This cuts out some expenses it might occur due to the retail system. Therefore, the products can go straight to customers hand in cheaper price. At it has proven succeeded.
Overall sales of the brand grew by 7% this year. Now, it reached $10.7 billion.
Surprisingly enough, Chinese market has a big portion of the rise. Despite the previous report that put Nike’s rank down in Chinese consumer brand preference, its revenue in China grew 22% to $1.7 billion. The company is also one of the few which are lucky enough not to get hit hard by the U.S.-China trade war.
In addition, Nike’s popularity has surpassed Adidas in several places. And it trades at 32.5 of price-to-earnings ratio. It is a few percent higher than Adidas’ 29.5.
Nike’s stock trader: it’ll climb 8% next month
According to a report by CNBC, Nike’s traders have been boasting about its shares. Some of them believed that the stock will continue to climb further. They dared to bet that the stock will rise up to 8% by October.
Those traders stated that the stock, which was at $88 in Tuesday, can go up to $95 by the end of October.
