Nike shares hit 12-year low as stock falls below 40 US dollars

Nike shares have fallen below the 40 US dollar mark, reaching their lowest level in 12 years. This decline follows a failed attempt to stabilize the stock price between 40 and 45 dollars earlier this year.

The company is facing a prolonged growth crisis attributed to several factors: products and designs that have missed consumer needs, trade barriers, rising production costs, and the cost-of-living crisis in the United States. Additionally, weak business performance in the Chinese market has further pressured development.

Since its record highs of nearly 180 US dollars, Nike's stock has lost approximately 80 percent of its value, with losses totaling nearly 40 percent within this year alone. Technical analysis suggests strong sell signals as the stock remains in a downward trend, contrasting with the performance of its rival, Adidas.