Does it go up/down or does not matter?
5 replies (most recent on top)
There’s probably no correlation to stock price over the near term. What Wall Street wants to see is a healthy balance sheet and strong earnings.
Nike’s SG&A is wayy too high - so the layoffs are a cold-blooded part of the strategy to rein in those costs. If future earnings calls show the SG&A taking a healthier trend, the stock price will start growing again.
Nike’s stock is doomed anyway. As is the company. Cost cutting through layoffs will just sink it further.
In my experience, it usually trends up when more details are confirmed, like how much the layoffs will save the company.
Buy the rumor, sell the news.
When it’s announced it always goes down. But it is a strategy to drop it to its resistance value so it can climb again from there. It’s a reset.
And Wall Street absolutely does love layoffs. They don’t like bad press. When the bad press goes away, cash talks. It’s a multi quarter strategy.
Down. Wall Street doesn’t like layoffs. It will jump once the margins show. Look at what happened to meta.
Stock down when it was announced at earnings. Wall Street knows Nike can’t grow revenue only cut costs