Nike just laced up a solid earnings report, but the quarterly outlook tripped it up.

The sportswear company beat on both revenue and earnings, but under the hood, results were mixed: wholesale sales rose 5%, but Nike’s own stores and e-commerce sales fell 4%, while gross margins slipped to 40.2% as tariffs battered North American profits. The real problem was that management guided for sales to fall 2% to 4% this quarter, missing expectations for 2% growth, and warned that sales will sink by low single digits through the end of the calendar year.

As a result, shares dropped 15.55% today, hitting their lowest level in over a decade. So what gives? While the beat wasn’t particularly strong, the reaction still feels somewhat harsh.

A long path to recovery

Investors are losing patience with CEO Elliott Hill’s turnaround, now one and a half years in. His strategy—refocusing on sports and rebuilding wholesale relationships—is taking longer than expected as he contends with a plethora of challenges:

• China weakness: Chinese sales fell 7% and are expected to drop another 20%, as local competitors undercut Nike on price.
• Converse drag: Sales of the Converse brand plunged 27%, deep enough to attract outside interest: Authentic Brands Group, owner of Reebok and Champion, has reportedly expressed interest in acquiring Converse. Nike, however, says Converse is not for sale.
• Rising competition: Newer brands like On and Hoka are gaining share in performance footwear, while Nike’s recent product launches have struggled to resonate.
• Margin pressure: Tariffs, geopolitical tensions, and higher costs are weighing on profitability.

The investor playbook

Nike says the reset should be largely completed by year-end—a much-needed catalyst to stabilize the stock, which is already down 29.96% YTD. Goldman Sachs, JPMorgan, and Bank of America all flagged weak near-term revenue outlooks following the earnings report, and all three downgraded the stock today.

But some argue that the selloff may also be an opportunity. Nike is now trading at a forward P/E of 24.4, well below its five-year average of 34.2. If the turnaround gains traction and delivers on expected earnings growth, today’s weakness could look like an attractive entry point for long-term investors.

For now, Nike’s catching its breath. But if the reset works, it won’t stay on the sidelines for long, and could quickly pick up speed once again.—SY

🟢 What’s up

• Eli Lilly climbed 3.78% after the FDA approved its GLP-1 pill, Foundayo.
• Boeing rose 4.17% thanks to a partnership with the Defense Department to expand missile defense production.
• nCino jumped 10.61% after beating earnings and landing new customers, standing out in a weak software environment.
• Intel gained 8.84% on plans to repurchase a $14.2 billion stake in its Ireland chip facility.
• Cal-Maine Foods rose 5.47% despite weaker earnings, as investors backed its shift toward specialty eggs and prepared foods.
• Dave & Buster’s added 16.07% as investors looked past weak Q4 results to a stronger 2026 outlook.
• Calvin Klein & Tommy Hilfiger parent PVH advanced 9.73% on an earnings and revenue beat.

What’s down

• Hasbro fell 4.51% after disclosing a cybersecurity incident and ongoing investigation.
• Philip Morris dropped 4.84% as delays in FDA review of nicotine pouches weighed on its Zyn business.
• RH sank 19.29% after missing on both revenue and earnings and issuing weak full-year guidance.
• Chevron lost 4.62% and ExxonMobil slipped 5.23% as oil prices fell on expectations of easing tensions with Iran.
• Beyond Meat declined 11.57% as quarterly revenue missed expectations and continued to contract year over year.

The average price of gasoline in the US rose above $4 per gallon yesterday. The International Energy Association says it’s about to get much worse.

IEA Executive Director Fatih Birol hopped on the In Good Company podcast hosted by Nicolai Tangen, CEO of Norges Bank Investment Management, to spit some hard truths. The hardest to hear was that the oil shock in March was pretty tame because there was already oil aboard tankers at sea before the Strait of Hormuz was closed. Those ships are reaching their destinations in the next few days—and once they arrive, there won’t be any more coming after them.

“In April there is nothing,” Birol said. “The loss of oil in April will be twice the loss of oil in March.”

The last tankers left the Strait of Hormuz on February 28, which means, according to JPMorgan, that the big day to watch here in the US is April 15—that’s the day the final oil tanker is expected to arrive in the states. After that, Birol says the energy shock could get historically painful.

“When you look at the [oil crises of 1973 and 1979], in both of them we lost each about 5 million barrels per day of oil. These oil crises led to global recession in many countries,” Birol said on the podcast. “Today, we lost 12 million barrels per day—more than two of these oil crises put together.”—MR

Like your uncle who just bought a speedboat despite living nowhere near water, Apple is officially in a midlife crisis.

The iconic tech company turned 50 today. Over the last half-century, the company has accrued a few milestones:

• It became the world’s most valuable company in 2011, surpassing Exxon Mobil—though it lost the crown almost exactly one year ago.
• The company’s iconic products have quite literally transformed society as we know it. The first Macintosh computer was rolled out in 1984, the iPod in 2001, and the iPhone in 2007.
• Since first going public 46 years ago, its shares have returned over 257,000%.

How do you like them Apples?

Even as it celebrates five decades as one of the most influential companies in the world, Apple is facing more challenges than ever before.

Its stock has fallen 5.97% this year, putting it on track to underperform the S&P 500 for the second year in a row. While Apple still dominates the smartphone market, it’s been a step behind rivals like Microsoft and Alphabet when it comes to generative AI. It abandoned its ambitious Apple Car venture, and its Apple Intelligence rollout failed to wow consumers or investors. Aside from the iPhone 17, the company hasn’t released anything game-changing lately.

What comes next: According to Wedbush analyst Dan Ives, 2026 will be a “significant product launch year” for Apple.

“We note that the company is likely in the later stages of developing its foldable phone, iPhone Fold, based on supply chain checks, which is rumored to launch later this year alongside the iPhone 18 launch in September, adding another catalyst to its hardware revenue,” Ives wrote in a note yesterday. He has an outperform rating on Apple, and his 12-month price target is $350, 37% higher than shares trade today.

And of course, the big question is whether Apple can become the hardware champion of the AI age. Earlier this year, Bloomberg reported that Apple is planning to roll out three AI wearables, including smart glasses, a pendant, and Airpods with…cameras?

Only time will tell if Apple makes it to the iPhone 50.—LB

• SpaceX filed confidentially for an IPO—beating rivals OpenAI and Anthropic to the punch.
• NASA’s launching its latest mission today—here are the six stocks that could benefit.
• Iran is threatening US tech companies, including Apple, Microsoft, and Alphabet.
• Here’s why Rocket Lab CEO Peter Beck just cut his own salary to $1 a year.
• OpenAI is flopping on the secondary market, while Anthropic is crushing it.
• Investment firm Franklin Templeton is acquiring crypto firm 250 Digital.

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Economic reports: Nothing of note

Earnings announcements: Nothing but the weekly initial jobless claims and the February US trade deficit