Core Viewpoint - The U.S. Supreme Court is expected to make a ruling on tariffs imposed by President Trump, which could significantly impact various stocks and sectors in early 2026 [1][2]. Tariff Legality and Implications - The tariffs were imposed under the International Emergency Economic Powers Act (IEEPA), which has not been used historically for such purposes, raising questions about their legality [4][5]. - A ruling against the tariffs could lead to uncertainties regarding the repayment of tariffs collected from countries, companies, and consumers [6][12]. Market Predictions - Prediction markets indicate a 72% chance that the Supreme Court will rule against Trump's tariffs, with the odds of a favorable ruling for Trump declining from 48% in November to 28% [8][9]. - The most popular prediction for the number of justices voting in favor of the tariffs is three, with a 42% likelihood [10]. Affected Companies and Sectors - Companies like Costco Wholesale and Nike Inc. are highlighted as potentially impacted by the ruling, with Costco seeking repayment and Nike having suffered due to tariffs [12][13]. - The construction and industrial sectors, along with companies like Toyota and 3M, are noted as being significantly affected by the tariffs [14][15]. - Other companies that have filed lawsuits over tariffs include subsidiaries of Revlon and Del Monte Fresh Produce, indicating a broader impact across various industries [13].

Core Insights - Nike has sold its non-fungible token (NFT) arm, RTFKT, marking the end of an acquisition that represented the company's ambitious metaverse plans [1] NFT Market Overview - NFTs are unique digital assets on a blockchain, representing ownership of items like art and collectibles, gaining mainstream popularity in 2021 [2] - The popularity of NFTs has declined due to market saturation, falling resale values, and reduced speculative interest, alongside issues like scams and environmental concerns [3] RTFKT and Nike's Strategy - RTFKT was a digital fashion and collectibles studio that specialized in NFTs and virtual wearables, founded in 2020 and acquired by Nike in 2021 as part of its metaverse strategy [4] - RTFKT played a significant role in Nike's Web3 strategy, launching virtual sneakers and avatars before the subsidiary was ultimately shut down and sold [5] Shift in Company Focus - Nike's decision to sell RTFKT followed its 2023 move to shut down the subsidiary, with current CEO Elliott Hill refocusing the company on core sports performance and rebuilding relationships with major wholesale partners [6] - The sale of RTFKT became effective on December 16, marking a new chapter for the company [7]

Core Insights - The comparison between Adidas AG (ADDYY) and Nike (NKE) indicates that Adidas currently presents a better value opportunity for investors [1] Valuation Metrics - Adidas AG has a Zacks Rank of 2 (Buy), while Nike holds a Zacks Rank of 3 (Hold), suggesting a more favorable earnings outlook for Adidas [3] - The forward P/E ratio for Adidas is 15.70, significantly lower than Nike's forward P/E of 41.78, indicating that Adidas may be undervalued [5] - Adidas has a PEG ratio of 0.39, while Nike's PEG ratio is 2.81, further supporting the notion that Adidas is a better value investment [5] - The P/B ratio for Adidas is 4.8 compared to Nike's 6.86, reinforcing Adidas's stronger valuation metrics [6] - Overall, Adidas earns a Value grade of B, while Nike receives a Value grade of D, highlighting Adidas's superior valuation profile [6]

Core Insights - Nike has sold its digital products subsidiary RTFKT, marking its exit from blockchain-based collectibles and a strategic shift back to its core athletic performance business under new CEO Elliott Hill [1][3][4] - The sale was effective December 16, coinciding with a reported 30% drop in quarterly sales for Nike's Converse brand [1][3] - Nike had previously announced plans to end its NFT operations and blockchain initiatives [2] Group 1: RTFKT Acquisition and Sale - RTFKT was acquired by Nike in 2021 during the NFT boom, aimed at expanding Nike's presence in collectibles and metaverse markets [3] - The sale of RTFKT is described as "launching a new chapter" for Nike, while still allowing for potential future digital initiatives [4] - The buyer's identity and financial details of the sale remain undisclosed, but speculation suggests the buyer may be a significant player in the digital assets space [5] Group 2: Market Reaction and Legal Issues - Following the sale announcement, RTFKT tokens surged by over 270%, indicating market optimism about the potential revival of NFTs under new ownership [5] - Nike is facing legal challenges related to its exit from digital collectibles, with a proposed class action lawsuit filed by purchasers of Nike-themed NFTs seeking at least $5 million in damages [6][7] - The lead plaintiff claims that Nike's abrupt decision to shut down RTFKT devalued the NFTs without adequate notice or compensation [7]

Core Viewpoint - Nike has confirmed the sale of its digital products subsidiary RTFKT on December 16 of the previous year, marking a new chapter for the company and its community, although details about the buyer and sale terms were not disclosed [1] Group 1 - The sale of RTFKT indicates Nike's strategic shift in focus towards innovation in physical, digital, and virtual environments [1] - Nike will continue to invest in delivering innovative products and experiences across various platforms [1]

Core Insights - Nike has sold its digital products and NFT subsidiary RTFKT approximately one year after shutting down the business, marking a significant shift in its strategy [1][2] - The sale is described as "a new chapter for the company and its community," although details regarding the buyer and financial terms were not disclosed [2] - The broader NFT sector is experiencing a contraction, with notable companies like X2Y2 ceasing operations and major events like NFT Paris being canceled [3] Company Actions - Nike acquired RTFKT in late 2021 during the peak of the NFT boom, aiming to expand into digital collectibles and virtual products [4] - The company announced plans to shut down RTFKT's operations in late 2024, indicating a strategic pullback from NFTs while still pursuing digital and virtual products through partnerships with video game companies [5] - The divestment aligns with the leadership of CEO Elliott Hill, who has been refocusing Nike on its core sports business and rebuilding wholesale partnerships since taking over in 2024 [6]

Group 1 - Nike sold its digital products unit RTFKT in December 2025, focusing back on core sports products after shutting down the business [1] - The sale was effective on December 16, 2025, but the buyer and financial terms have not been disclosed [1] - RTFKT was acquired by Nike in 2021 under former CEO John Donahoe, but the strategy shifted under new CEO Elliott Hill, who has redirected focus towards sports and footwear [2] Group 2 - The sale of RTFKT coincides with a 30% sales drop in Nike's Converse brand reported in Q4 2025, raising questions about other parts of Nike's portfolio [3] - Nike announced the shutdown of RTFKT in January 2025 due to slowing active drops, pausing NFT production while continuing collaborations with video game firms [3] - The NFT market is experiencing a slump, with monthly sales dropping to $320 million in November 2025 and a total market cap of approximately $2.78 billion, down over 67% in the past year [4] Group 3 - Major NFT platforms are adapting to market weakness, with OpenSea shifting focus from NFTs to a broader trading model, and X2Y2 shutting down its NFT operations [5] - Event activity related to NFTs has cooled, with recent cancellations of planned events like NFT Paris and RWA Paris due to market conditions [5]

Core Viewpoint - Nike quietly sold its digital products subsidiary RTFKT in December 2025, marking a significant shift in its strategy towards digital and virtual environments [1] Group 1: Company Actions - RTFKT was acquired by Nike in 2021 and announced the end of its Web3 services in January 2025 [1] - Nike's Converse brand reported a 30% decline in quarterly sales in December 2025 [1] - The sale of RTFKT is described as a new chapter for the company and its community, with ongoing investments in innovative products and experiences across physical, digital, and virtual environments [1]

Core Insights - Nike's recent quarterly results indicate stability in revenue but a significant profit decline of 32% [1][5] - The company is facing challenges in its turnaround efforts amid economic uncertainty, with new CEO Elliott Hill focusing on improving partner relationships and brand revitalization [1][2] - Apple CEO Tim Cook's recent investment of $3 million in Nike stock reflects his belief in the company's potential, although it may not be a practical indicator for average investors [2][6] Financial Performance - Nike's revenue has remained stagnant, with earnings dropping from $1.2 billion to $792 million in the quarter ending November 30, 2025 [5] - The company's gross margin has been declining, impacted by tariffs, contributing to the profit decrease [5] - Nike's stock has lost over half its value in the past five years, and it currently trades at 38 times its trailing earnings, suggesting it may still be overvalued [10] Market Position and Consumer Behavior - The apparel market is becoming increasingly competitive with cheaper alternatives, which may affect consumer perception of Nike's brand value [9] - While there are loyal customers willing to pay a premium for Nike products, the average consumer may prioritize cost-effective options [9] - Nike needs to demonstrate its growth potential to regain investor confidence, as current performance does not reflect a growth business [10]

Core Viewpoint - NIKE has faced significant challenges in recent years, including post-pandemic demand issues and margin pressures from tariffs, leading to a year-to-date stock decline of approximately 15% in 2025. The company is now focusing on a turnaround strategy for 2026 [1][9]. Group 1: Company Challenges - NIKE's shift to a direct-to-consumer model has backfired, resulting in reduced shelf space and brand visibility in retail environments [2][9]. - The company's sales growth has been modest, with a year-over-year increase of only 0.6%, which is significantly lower than historical growth rates [3][10]. - Profitability has been impacted, with gross margins contracting by 300 basis points year-over-year due to tariffs and softer post-pandemic demand [4][6]. Group 2: Financial Outlook - The current Zacks Consensus EPS estimate for NIKE has been revised down by more than 30% over the past year, with next year's estimate also falling by 14% [8]. - Despite the challenges, there has been some improvement in top-line performance, with the latest revenue growth rate of 0.6% representing a recovery from declines of -12% and -9% earlier in 2025 [10]. Group 3: Future Prospects - NIKE's CEO has expressed confidence in the company's comeback strategy, indicating that progress is being made in prioritized areas for long-term growth and profitability [4]. - The stock is considered one to watch closely in 2026, as a quarterly release showing accelerating sales growth and easing tariffs could positively impact its performance [11].