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Market Data Table

Breakfast News: Nike Laces Up for China Growth

July 22, 2026

Tuesday's Markets
S&P 500 7,509 (+0.89%)
Nasdaq 25,837 (+1.29%)
Dow 52,225 (+0.74%)
Bitcoin $66,373 (+1.57%)

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CChart tracking Nike's revenue over the past five years shows that revenue has hovered from around $10 billion to $13 billion and currently sits at $11 billion.

1) Nike Streamlines China E-Commerce

Nike (NYSE:NKE) revealed plans late yesterday to overhaul its e-commerce distribution in China. Most online sales will be made through the company's own website and app and from Nike-branded storefronts on JD.com (NASDAQ:JD), Tmall, and Douyin, while local store partners are expected to concentrate on physical retail. The stock was little changed in pre-market trading.

"These new flagships will serve as the single, elevated destination for Nike": Cathy Sparks, vice president and general manager for Greater China, said the move "is about reducing fragmentation and strengthening the consumer journey," adding, "When the experience is consistent, the brand becomes stronger."
Greater China revenue fell 17% on a currency-neutral basis: The move is focused on returning the region to growth, and it comes after a year-over-year (YOY) revenue decline in the fourth quarter following a previous 10% drop in Q3.

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2) Super Micro Pops as Orders Surge

Super Micro Computer (NASDAQ:SMCI) popped more than 15% in pre-market trading after the artificial intelligence (AI) server manufacturer said a rise in new orders in fiscal Q4 should see gross margins roughly double -- from a prior guidance range of 8.2% to 8.4% up to a new range of 15% to 17%.

"Backlog rose to record levels at the end of fiscal 2026 with total new orders in excess of $60 billion received during the fourth quarter": In a business update, Super Micro said the boost is "primarily due to a favorable customer and product mix."
Dell and HPE ride Super Micro's coattails: Other companies in the server market enjoyed a knock-on effect. Dell (NYSE:DELL) added over 4% this morning on top of yesterday's 6% gain at close, with Hewlett Packard Enterprise (NYSE:HPE) adding a pre-market 3% in addition to yesterday's 5% rise.

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3) Pre-Market Q2 Results You Won't Want to Miss

GE Vernova (NYSE:GEV), recommended in Hidden Gems, beat Wall Street expectations with a 22% YOY revenue rise to reach $11.1 billion, 19% ahead of the $9.3 billion reported in Q1. Management raised full-year guidance and now expects revenue of $45.5 billion to $46.5 billion with free cash flow of $11.5 billion to $12.5 billion. Despite the upbeat results, the stock dipped 6% in early trading.
Westinghouse Air Brake Technologies (NYSE:WAB) gained around 6% pre-market after reporting 17.5% sales growth compared to the same quarter last year, reaching $3.18 billion -- and beating expectations of around $3.07 billion. The increase was driven by both freight and transit divisions. WAB is recommended in SA by Team Hidden Gems.
CME Group (NASDAQ:CME), an SA rec by Team Rule Breakers, reported $1.71 billion in revenue in Q2, slightly ahead of expectations and up a little from $1.69 billion a year prior. CEO Terry Duffy told us, "The first half of 2026 was the strongest in CME Group's history," with record first-half performance across most headline measures. The stock edged up around 1% in response.

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4) Today's Take: Don't Spend It All in One Place

Younger companies are wise to reinvest cash flow back in the business. To do otherwise typically comes at the cost of growth and market share. Costco (NASDAQ:COST) is an example of a company that reinvested heavily early in order to grow its store base and market share. Fast-forward to today and the long-term investors have won and the company dominates its space. -- Jason Moser, Team Rule Breakers

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5) Your Take

What's the most valuable investing lesson you've learned from a mistake or failure in your life?

Share with friends and family, or become a member to hear what your fellow Fools are saying!

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