How to invest in Nike

How to invest in Nike

In the field of online investment and trading, certain big names attract traders because the brand they represent is sometimes synonymous with profitability and popularity. Nike, whose securities are available for trading on the stock market, perfectly illustrates this. It is therefore possible to effectively speculate on these shares, provided you are aware of the following.

Nike is an American group and among international specialists in the design, manufacture and sale of footwear, sporting goods and equipment. The company owns several brands including Nike, Converse All Star, Hurley, etc. Its business is divided between selling shoes, selling clothes and selling sports equipment. Its business is worldwide: it is particularly well established in North America, Europe but also in Asia and the rest of the world. Nike operates in a highly competitive industry, with top names in the sports arena including Adidas, a direct competitor and one that Nike is fighting for global leadership. Despite this, Nike has maintained its reputation over the years, despite an often aggressive competition.

Looking at Nike share graphs over the last ten years, it is clear that it is part of a fundamentally bullish trend. For example, while stock was only $13.5 in 2007, it is now above $50. Nike has many assets that are strong investment motives. First of all, Nike has a leading position in its field. It has managed to create an excellent distribution network, whether through its thousands of resellers or by marketing its products live, online or via various Nike brands.

Part of its success can be explained by the importance given to Research and Development in order to provide athletes with innovative products for a wide range of sports: football, basketball, volleyball, running, handball, etc. The group also has its own factories to develop and manufacture its products at a lower cost. Finally, from a marketing point of view, Nike's positioning is excellent with an international fame and strong brand identity. In terms of stock profitability, Nike's revenues are linked to the market shares it holds in the sector. Currently, competition in the sports equipment sector is still very strong and if the Group’s market shares were to decrease, the consequences on its sales and turnover would be significant.

This overview shows how the Nike Group appears to be an attractive investment, whether by its stability, its willingness to stay at the forefront of technological developments or the importance of its marketing network. Buying Nike Group shares is not within everyone’s reach. However, it is possible to go through CFDs to take advantage of the company’s health to make significant gain. This process is accessible to everyone and many online brokers offer these trading services. Thanks to a strong leverage effect, it is thus possible to profit from the good results of the Nike Group abroad, and this by investing moderately. Traders can define whether they want an investment in the short, medium or long term and adapt their trading strategy accordingly.

Last Update on 31/10/18

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