Investing in Nike
However, being a renowned company is not the only aspect that can increase or decrease the value of its shares. We must analyze a large number of factors in order to make the decision to invest.
That’s why we want to talk to you about Nike and its stock market performance. We want to give you all the information you need to make your immersion in the stock market as productive as possible.
What is Nike?
The Nike logo is easily recognized worldwide, thanks to the greatness and projection it has achieved. It is a company focused on the design, production, sale and distribution of sporting goods. The quality and comfort provided by this brand has allowed its products to be used even outside the sports world.
In 1968 by the hand of Phill Knight and Bill Bowerman, the company Blue Ribbon Sports, which later in 1971 would evolve into what is now known as Nike. Its headquarters are located in Orlando, however, it currently has 858 stores around the world.
The brands offered in the market have caused great impact both in the sports world and in people’s daily lives. Some, such as Cole Haan, Bragano, Converse All Star, Hurley and Air Jordan, are highly demanded worldwide.
It is currently positioned as one of the three largest manufacturers of clothing and sporting goods in the world. It has allied with different companies in order to provide solutions to all athletes who prefer them. Some of them are Philips, Apple and Adidas for a short period of time.
Being characterized as one of the most recognized companies today, it allows it to get customers quickly and thanks to this increase its value in the stock market. Although the fruits of investing in Nike nasdaq stock may be appreciated only in the long run, it has become one of the most reliable companies with respect to its stock price.
As Nike’s earnings increased significantly during the last quarter, its share price also benefited, rising 13%. It is a company that is expected to continue to increase its sales due to the proximity of the Olympic Games in Tokyo.
Buying Nike shares: Advantages
Before proceeding to invest, it is necessary to know both the negative and positive aspects that we will obtain from the target company. In this sense, Nike shares in the stock market guarantee us the following advantages, which will allow us to establish an effective investment strategy.
- The greatness and worldwide positioning of this company is one of its strong points. Thanks to this, it has a large number of customers who will choose it over its competitors.
- Another advantage of Nike is that it does not own factories, so it does not need to invest in real estate. Thanks to this, it is able to reduce important costs and maintain a light organizational structure.
- The high level of competitiveness that Nike has demonstrated throughout its years of operation gives it confidence as a high-level industry.
Buying Nike shares: Disadvantages
In the stock market there can be certain inconveniences that affect the productivity of our investment. This aspect is important to take into account when planning our trading strategy. For this reason, we show you those unfavorable aspects of which Nike can be a victim.
- Despite the diversity of products offered by Nike, it only manages to project itself in the market through its line of sports shoes. This could mean that even the slightest loss of customers could have a significant impact on revenues.
- Although it is the largest company in its field in the United States, competition from German companies such as Adidas and Puma represents a high risk to its positioning.
In today’s trading mode the best way to invest is through online brokers that facilitate the purchase of shares. Through these platforms the investment process can be done in less time and in a simpler way. Because of this we want to let you know the best brokers to invest in Nike.
One of the best broker platforms is eToro, which is one of the safest and easiest to use. We can choose to start with a demo account in which we can make investments with fictitious money. This way we avoid the risk of losing our capital, allowing us to learn how the stock market works.
When you start actively investing in Nike through a stock, you will need to make a minimum deposit of $200. However, eToro tries to show as much important information about each company as possible, so that its users can think about their investment strategies correctly.
Another highly recommended broker is Plus500, which also offers a demo mode and a chart with information about the company’s changes in the stock market. To start investing it will only be necessary to make a minimum deposit of $100, with which we will also have access to material regarding investment strategies.
The world of the sports market is currently on the rise, mostly due to the proximity of the Olympic Games. In this sense, Nike stocks remain the leader in the United States, a fact that is expected to be maintained in the coming years. Due to this, the profit produced by this company’s shares is expected to improve greatly.
So how much is a share of Nike stock worth? Well, currently the value of Nike shares has a 3-digit figure. So we advise you to know the exact time to invest your investment capital in this type of stock. In other words, Nike should have a reasonable share price when it comes to putting your money into the stock market with its shares.
Thanks to the popularity and stability of this successful company, investing in its shares is an excellent decision, even for novice investors. With the data we have provided, you already know how to invest in Nike shares, so don’t wait any longer and start increasing your capital wisely.