Nike’s nightmare collapse deepens as shares crash 78% from highs — critics say brand went ‘woke’ and now it’s broke

Jing Pan

Wed, August 19, 2026 at 4:05 PM GMT+3 6 min read

NKE +1.45%

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Nike (NYSE: NKE) has long been one of the most recognizable brands on the planet — a powerhouse that dominated sneakers, apparel and popular culture for decades.

But lately, its story has taken a sharp turn.

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Shares of the athletic giant have fallen roughly 78% from their peak in late 2021, recently sinking to their lowest level in 12 years and wiping out more than $200 billion in market value.

Behind the scenes, even leadership was sounding worn down.

"I'm so tired, and I know you are too, of talking about fixing this business," CEO Elliott Hill said during an internal meeting earlier this year, Bloomberg reported (1). "You can't just sit there and say everything's great."

The company has been navigating a difficult transition in recent years — from shifting consumer preferences and increased competition to supply chain adjustments and a push toward direct-to-consumer sales.

Some critics (2) have pointed to Nike's marketing choices and cultural positioning, arguing that the brand has leaned too far into social issues — and that it's now paying the price (3).

The phrase "go woke, go broke" has resurfaced (4) in online commentary around the company's recent struggles.

But that explanation may be too simplistic.

Nike's challenges reflect a broader set of pressures facing the retail and consumer goods sector. Rising costs, changing consumer habits, inventory missteps and intensifying competition from brands like On and Hoka have all played a role. Meanwhile, China — once a crucial engine of growth — has become another major headache for the company, with Greater China revenue dropping 12% (5) in the most recent quarter.

In other words, this isn't just about messaging — it's about execution, strategy and a rapidly evolving market.

And while Nike's latest quarterly results topped Wall Street expectations on both earnings and revenue, not everyone is convinced the turnaround is on track.

JPMorgan recently downgraded (6) the stock from Neutral to Underweight, with analyst Matthew Boss warning that Nike's recent "Win Now" decisions "will linger and impact NKE's P&L in 2H27 and into FY28."

But one of Nike's most famous athletes believes he knows what the company is missing.

"You gotta get back into the roots," NBA superstar LeBron James told Yahoo Sports (7), arguing that Nike needs to reconnect with the communities and younger consumers that helped make the brand culturally dominant in the first place.

"You gotta get back to being out in the inner city, having runners … When I was coming up, you had people that was literally out in the communities talking to these younger generations, asking them what they like, what they don't like."

And despite Nike stock now hovering near a 12-year low, not everyone on Wall Street thinks the Swoosh is finished. Bernstein analyst Aneesha Sherman recently reiterated (8) a Buy rating on Nike stock while adjusting her price target from $72 to $68. That still represents roughly 70% upside from where shares trade today.

Protect your wealth with a time-tested safe haven

For investors, Nike stock's downturn is a reminder that even the biggest names can falter — underscoring the importance of building a diversified portfolio.

Rather than relying solely on stocks, many investors look to spread their risk across different asset classes that can behave differently in times of uncertainty.

According to Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, one of the most time-tested ways to do that is through gold.

"People don't have, typically, an adequate amount of gold in their portfolio," he told CNBC last year. "When bad times come, gold is a very effective diversifier."

Long viewed as the ultimate safe haven, gold isn't tied to any single country, currency or economy. It can't be printed out of thin air like fiat money and in times of economic turmoil or geopolitical uncertainty, investors tend to pile in — driving up its value.

Over the past five years, as inflation continued to erode the value of paper currency and investors looked for protection outside traditional stocks, gold has climbed 137%.

Other prominent voices see further potential. JPMorgan CEO Jamie Dimon has said that in this environment, gold can "easily" rise to $10,000 an ounce.

One way to invest in gold that can also provide significant tax advantages is to open a gold IRA with the help of Goldco.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it a compelling potential option for those wanting to ensure their retirement funds are diversified during rough economic times.

Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you're curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.

Income, even in a down market

Like stocks, real estate has its cycles, but it doesn't rely on a booming market to generate returns.

Even in a downturn, high-quality, essential real estate can continue to produce income through rent. In other words, you don't have to wait for prices to rise to see a payoff — the asset itself can work for you.

In fact, investing legend Warren Buffett has pointed to real estate as a prime example of a productive, income-generating asset.

In 2022, Buffett stated (9) that if you offered him "1% of all the apartment houses in the country" for $25 billion, he would "write you a check."

Real estate also provides a natural hedge against inflation. When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts with inflation.

Of course, you don't need $25 billion — or even to buy a single property outright — to invest in real estate today. Crowdfunding platforms like mogul offer an easier way to get exposure to this income-generating asset class.

As a real estate investment platform offering fractional ownership in blue-chip rental properties, mogul gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.

Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Another option is Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.

Lightstone DIRECT's direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.

With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.

Another real asset with staying power

Gold and real estate aren't the only tangible assets investors have historically turned to when looking beyond stocks.

Farmland offers another route. Agricultural land has an unusually durable economic purpose: come what may, people always need to eat.

In fact, farmland is another asset Buffett likes to use when illustrating the value of productive assets. He once put it this way: "If you said … for a 1% interest in all the farmland in the United States, pay our group $25 billion, I'll write you a check this afternoon."

And just like with real estate, you don't need $25 billion — or the skill to sow and cultivate seeds — to get exposure to farmland today.

FarmTogether gives accredited investors a way to invest in fractional ownership of U.S. farmland. Investors can potentially earn income from crop production while also benefiting if the value of the land increases over time.

The platform has $217 million in assets under management across 51 funded deals, covering eight states and 15 crop types. FarmTogether says each offering goes through a 105-point due diligence process, and less than 1% of deals in its pipeline make it onto the platform.

Farmland has also historically held up differently than other assets during downturns. According to FarmTogether's own data comparing NCREIF indices from 1992-2025, farmland's returns have shown a lower correlation to inflation than stocks, bonds or REITs.

Nike’s nightmare collapse deepens as shares crash 78% from highs — critics say brand went ‘woke’ and now it’s broke

Must Read

Protect your wealth with a time-tested safe haven

Income, even in a down market

Another real asset with staying power

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