Bob Drbul, Guggenheim Securities senior managing director, joins ‘Squawk Box’ to discuss Nike as the company's stock plunged following their projection of a more significant sales decline next year.
Nike made a huge strategic mistake when they leaned heavily into their online focus. They forgot once the pandemic was over, people were going to start getting out the house & shopping in person again. They also cut their relationship with Footlocker, which was a mistake. They're in trouble. Nike will always be Nike, but this was a mistake!🤣
Nike is the Apple of the apparel industry, if you think they’re going anywhere you’re fooling yourself……my price target for Nike is around 143, especially considering their balance sheet and if the fed decides to cut rates at any point
Neither Nike nor Apple are invulnerable. There is no such thing. There is no such thing as too big to fail. It can happen to any company if badly led, bad decisions are made, and your competitors disrupt the market. Go read up about Kodak and Nokia to name just two. Both were giants in their fields that utterly dominated. Yet where are both today?
Stock is at 80 dollars in a 25 PE with declining financial metrics and this fool has a 115 price target end of fiscal...Yeah sales down 10% and this stock should trade at a 40 PE...fools
