At the same time, however, it would be foolish (with a lower-case "f") to believe any given business is without risk. There are no guarantees of success in the world of investing, so it's a great idea for shareholders to explore what could go wrong. Here are three reasons, then, that Under Armour's stock could fall:
High-profile sponsorships could backfire
Nike isn't sitting on its heels
Up until this point, the vast majority of Under Armour's growth has been driven by its leading position in the performance apparel segment. Going forward, however, one of Under Armour's most promising growth drivers is its young footwear business, which was launched in 2006 and represented $110 million of last quarter's sales.
Global growth is expensive, complicated
Speaking of high-tech wearables ...
Apple recently recruited a secret-development "dream team" to guarantee that its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming that its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts that 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!
Steve Symington owns shares of Apple and Under Armour. The Motley Fool recommends and owns shares of Apple, Nike, and Under Armour. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.