Nike Spells Retail Trouble?

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Nike Spells Retail Trouble?

Problems regarding the recent earnings for Nike (NYSE: NKE) could serve as a “canary in the coal mine” and spell trouble for similar retail stocks such as Under Armour (NYSE: UAA) and Lululemon Athletica (Nasdaq: LULU), says Leon Smith, the CEO of the stock trading platform Tiblio, in a new episode of the Early Bird podcast.

Pros and Cons: Smith says the benefits of investing in Nike include a strong domestic demand and a growing direct-to-consumer market. However, there are issues in some international markets.

China: Nike performed poorly in China during the quarter. Smith said that Nike is recovering from a recent boycott against western consumer brands in China.

Outlook: Since Nike was hesitant to give an outlook due to inflation, Smith said that he is concerned about others in the retail sector.

Final Thoughts: How should you trade Nike? Smith gives a detailed strategy for trading Nike, so listen to a new episode of the Early Bird podcast to find out.

Notables

Notable Earnings Today: Atotech (NYSE: ATC), SRAX (Nasdaq: SRAX), Precipio (Nasdaq: PRPO), ZoomInfo Technologies (Nasdaq: ZI).

Notable IPOs Today: Nutex Health Inc. Common Stock (Nasdaq: NUTX), Relativity Acquisition Corp. Class A Common Stock (Nasdaq: RACY), Warner Bros. Discovery, Inc. Series A Common Stock When Issued (Nasdaq: WBDWV).

Notable Equity Crowdfunding Campaigns Ending Today: The Postage (MicroVentures), Eastcoasterdam Gardens (MainVest), Sirocco Energy (Wefunder).

Notable Economic Events Today: Factory Orders (10:00 a.m. ET).

'Will Smith Slap' Crypto Soars, Crashes

Proving that anything can be a cryptocurrency, someone made a cryptocurrency of actor Will Smith slapping comedian Chris Rock at the Oscars last week.

History: A day after the Oscars slap, someone created a digital asset on the blockchain of the slap and called it Will Smith Inu (WSI).

Soaring: Within 24 hours, the price of WSI jumped from $0.00000016 to $0.0000033.

Falling: But then, the price of this meme coin went crashing back down to Earth. It currently sits at around $0.0000006.

Final Thoughts: This should remind investors to generally avoid meme coins, especially those created as a response to a major cultural moment.

Why Are There So Many Stock Splits?

With several high-profile companies announcing stock splits recently, this begs the question: why are so many companies choosing to implement a stock split now?

Definition: A stock split is when a company increases the number of available shares by dividing the current shares.

Why: A company chooses to initiate a stock split usually when the price of the stock is really high and the company wants to attract smaller investors.

When: Typically, a company chooses to create a stock split when it is performing well, but of course there are exceptions.

Final Thoughts: The best thing about a stock split is that it creates additional hype for the stock.

Trends to Watch

No Fly Zone: Airlines cancel hundreds of weekend flights as thunderstorms sweep through Florida (CNBC)

Can’t Make This Up: Tesla Crypto Tokens Rise as Shanghai Shutdown Discounted (Bloomberg)

Alert: Short Sellers Bet Tether, Crypto’s Central Bank, Is Vulnerable to a Run (The Wall Street Journal)

Strategy: Here’s how pro traders use Bitcoin options to profit even during a sideways market (Cointelegraph)

Trouble: The economic shock hitting the housing market just got bigger (Fortune)

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