One of Michael Burry's top positions needs help
Lululemon just hit its worst drawdown in nearly 20 years, down 77% from its all-time highYet Michael Burry just doubled his position to 17% of his portfolioHe called it "screaming cheap" ahead of earnings on September 3rdHere's what he sees:• LULU trades under 10x earnings, the only major U.S. clothing retailer that cheap• Only 2 of 32 analysts give the stock rate a "Buy", which is the same bearish setup right before its 2018 turnaround• The margin damage is coming from tariffs, not falling demand, down 380 basis points, partly offset by cost cuts• A new CEO from Nike takes over in September, the same playbook that quadrupled the stock off its 2014 low
Share your thoughtsWhat's on your mind?
0 / 2,000
- S
$Nike(NKE.US) with a gap up confirmation chart later. Safer is closer to close to make sure gap holds.
Source: Sunrise Trader
- N
Another win for corporations, another loss for Americans
President Trump’s tariff refunds for:• Walmart $Walmart(WMT.US): $2.4B• Apple $Apple(AAPL.US): $2.2B• Target $Target(TGT.US): $2.2B• Ford $Ford Motor(F.US): $1.3B• Nike $Nike(NKE.US): $1.0B• Amazon $Amazon(AMZN.US): $600M• General Motors $General Motors(GM.US): $500M• UPS $UPS(UPS.US): $500MYour refund: • $0 - F
$Nike(NKE.US)
Nike’s China Reset: Short-Term Pain, Long-Term Gain? Here’s Why Investors Should Pay Attention
Nike’s strategic overhaul in China marks a decisive shift from pursuing volume to protecting brand value. As highlighted by CNBC, the company is streamlining its digital presence by concentrating sales through its official channels and a select group of authorised platforms—including Tmall, JD.com, Douyin and Nike’s own app—instead of relying on numerous online distributors. This “cleaner digital strategy” aims to reduce excessive discounting, improve pricing discipline and deliver a more consistent premium shopping experience. While this transition may temporarily weigh on sales as weaker distributors are phased out, it strengthens Nike’s long-term competitive position.
Fundamentally, FY2026 remains a rebuilding year. Revenue growth is stabilising, gross margins are gradually improving and inventory levels have normalised, although Greater China continues to face intense competition from domestic brands. Management’s focus on profitable growth rather than market share should support stronger earnings quality over time.
Technically, Nike has established a higher-low pattern following its earnings recovery, but faces key resistance after a sharp rebound. A sustained breakout would reinforce the bullish trend.
For options investors, the strategy depends on positioning. Shareholders assigned through short puts can monetise elevated premiums by writing covered calls while collecting potential upside. Investors seeking new exposure may consider selling cash-secured puts near technical support levels, allowing them to accumulate shares at attractive effective prices if volatility returns. If Nike successfully executes its China turnaround, patient investors could benefit from both earnings recovery and multiple expansion over the medium term.
This article is for informational purposes only and should not be construed as financial advice.
Trade Showcase: Trade, Show & Earn Rewards! - 韭
$Nike(NKE.US)After a long period of weakness, Nike (NKE) has finally moved back into the green for my position with a +0.37% unrealized gain. It’s only a small profit, but it’s a nice reminder that patience can pay off. I’m still optimistic about Nike’s long-term brand strength, innovation pipeline, and global presence. Short-term volatility doesn’t change my investment thesis, so I’ll continue holding and monitor upcoming earnings and consumer demand trends. One step at a time—slow and steady. #TradeShowcase
Trade Showcase: Trade, Show & Earn Rewards! - 韭
$Nike(NKE.US)
Added Nike (NKE) to my portfolio around 42.25, and it’s currently slightly below my entry at -0.54%. Im actually doing a covered call once again on Nike haha!! expiry k. This friday, see whether can success this time again. Short-term price action remains weak as the market continues to price in slower consumer spending and margin concerns. However, I believe much of the pessimism is already reflected at these levels. Nike remains a global brand with strong long-term potential, and I’m comfortable holding through the volatility while waiting for a stronger turnaround in earnings and sentiment. Patience is part of the investment journey.
Trade Showcase: Trade, Show & Earn Rewards! - FFeatured
$Lululemon(LULU.US)
Lululemon’s share price has been punished as investors question whether its premium athleisure moat is fading. The transition from Calvin McDonald to former Nike executive Heidi O’Neill adds execution risk, but also offers an opportunity to reinvigorate product innovation and global expansion. FY2025 revenue reached US$11.1 billion, while Q1 FY2026 revenue rose 4% to US$2.5 billion, although comparable sales grew just 1% and management acknowledged softer demand in North America. (Lululemon)
Its moat remains differentiated. Unlike Nike, Adidas and On, Lululemon dominates the premium yoga and lifestyle apparel niche through direct-to-consumer sales, strong community engagement and premium pricing, producing margins that still exceed most peers. However, competitors including Alo, Vuori and traditional sportswear brands are narrowing the innovation gap, while China—once its growth engine—is showing signs of slowing. (Financial Times)
Fundamentally, Lululemon still boasts a debt-light balance sheet, healthy cash generation and a sizeable net cash position. Technically, the stock remains in a long-term downtrend after losing over half its value, suggesting investors should wait for a sustained higher-high pattern before turning bullish. The business remains highly relevant, but the next 12 months will determine whether management can restore product momentum and prove that its premium brand still commands pricing power.
Trade Showcase: Trade, Show & Earn Rewards! - S
$Nike(NKE.US) back over 10/21/50ma's this name been a dud but maybe this time? I put some in my investment/spec/gamble account. None in trade account
Source: Sunrise Trader
- FFeatured
$Nike(NKE.US)
Nike: Turnaround Story or Value Trap?
Under CEO Elliott Hill, Nike is shifting back to its roots—prioritising sports innovation, rebuilding wholesale partnerships and reducing excessive discounting after years of overemphasising direct-to-consumer sales. While strategically sound, investors remain unconvinced because the turnaround is taking longer than expected. (Reuters)
FY2026 revenue was US$46.4 billion, gross margin improved to 42.9%, and net income reached US$3.1 billion, although earnings still declined 3% year-on-year. Wholesale revenue rose 6%, offset by weaker Nike Direct sales (-6%) and persistent weakness in Greater China. (Nike Investors)
For the share price to recover, Nike must restore sustainable revenue growth, regain market share in China, accelerate product innovation, expand premium full-price sales and consistently improve operating margins. These are the key catalysts that justify multiple expansion rather than merely cost-cutting.
Fundamentally, Nike remains financially resilient with strong cash generation and shareholder returns, but near-term growth visibility is limited. Technically, the long-term trend remains bearish despite oversold conditions, suggesting confirmation of higher highs and higher lows before a sustained rally.
For put sellers who have been assigned, forced liquidation is rarely optimal unless the original investment thesis has broken. Investors with conviction may reduce their cost basis through covered calls while collecting dividends, whereas those with better opportunities elsewhere should redeploy capital if they no longer believe the turnaround can outperform the broader market over the next 2–3 years.
Trade Showcase: Trade, Show & Earn Rewards!