Nike (NKE +4.46%) shares surged on this holiday-shortened trading day. It might not be for a reason you would think, though. The global footwear and apparel maker has had a rough year. Even amid great overall market returns, Nike shares have plunged 20% this year.
Most recently, the shares dropped sharply after the company reported fiscal 2026 second-quarter results. But shares are popping today after lead independent director, and Apple CEO Tim Cook, just nearly doubled his stake in Nike with a purchase of 50,000 shares.
After rising as much as 5.6% this morning, Nike shares closed today higher by 4.7%.
Image source: Getty Images.
Is Tim Cook calling a bottom?
Nike recently reported a mixed quarter, but investors were spooked by a significant 17% drop in its China sales. That sent Nike shares sharply lower after the report, closing near a 52-week low. A Securities and Exchange Commission (SEC) filing yesterday showed Nike's lead independent director -- and Apple CEO -- Tim Cook scooped up shares on the dip.
Cook purchased 50,000 shares, bringing his total direct holdings to 105,480 shares, valued at approximately $6.3 million.
NYSE: NKE
Key Data Points
That vote of confidence has also prompted investors to jump into Nike stock today. There are also fundamental reasons to like Nike stock. While China sales slumped last quarter, sales in North America jumped 9%, and Europe, Middle East, and Africa (EMEA), revenue increased 3%.
It's not surprising to see some investors following Tim Cook's lead, thinking Nike is in the early stages of a turnaround that could make the stock a market-beater in the coming months.
