Shares of Nike (NYSE:NKE) fell sharply on Wednesday, ending the trading day down 6.8%. But the stock was down as much as 7% at one point during market hours.
The stock's decline comes amid a sell-off for the overall stock market. But many fast-growing companies whose stocks have climbed sharply this year were hit hardest on Wednesday -- and investors may be lumping Nike into this group.
Highlighting how the overall market fell on Wednesday, the S&P declined about 3%. But growth stocks such as Amazon.com, Alphabet, and Netflix, were hit especially hard. These companies' shares fell 6%, 5%, and 8%, respectively, on Wednesday. While Nike's revenue isn't growing as rapidly as these companies, its stock has surged recently; the stock's excellent performance in 2018, therefore, has put Nike in the spotlight along with other growth stocks.
Investors may also simply be using this as an excuse to cash in on big gains. Even after Nike's 12% decline in October, shares are still up about 20% year-to-date.
Looking beyond the big swing in Nike's stock price, management expects full-year fiscal 2019 revenue growth to be in the "high single digits," management said in Nike's most recent earnings call.
This guidance comes as the company just wrapped up a better-than-expected first quarter that featured "stronger global growth and profitability than we anticipated entering this fiscal year," said Nike CEO Mark Parker in the company's fiscal first-quarter earnings release.