Nike
Nike (NKE) shares dropped almost 20% for the day after the company delivered a terrible quarterly earnings report to investors.
The company not only missed its fourth quarter revenue expectations, but it also lowered its fiscal year 25 revenue outlook. CEO John Donahoe referred to fiscal year 2025 as a transition year for the company.
The poor results and need for transition reflect the company’s loss of market share to companies like Deckers Outdoor (DECK) - producers of HOKA shoes -, Adidas and Om (ONON) -makers of Puma.
Previously, the company had guided expectations for positive growth in fiscal year 2025 but now Nike is now forecasting a mid-single-digit decline instead. This huge shift in the company’s outlook is likely to extend the selling pressure on Nike shares as the stock enters a long-term bear market trend.
The stock finished Friday just over $75. This is a significant price looking back to the 2019 and 2020 chart as that price formed a bottom for the stock twice. Expect a break below $75 to increase retail and institutional selling of the stock with a target of $57.
Uber
Uber (UBER) shares rallied more than 3% after the company announced they had resolved a longstanding lawsuit with the State of Massachusetts.
The state had been suing Uber over misclassifying their drivers as contractors, not employees. That misclassification deprives drivers of essential labor rights and benefits like minimum wage, overtime pay, and earned sick time, which are required under Massachusetts Wage and Hour Laws.
While the lawsuit resolution is good news, Uber’s chart is more interesting.
The stock’s 50-day moving average is in the process of shifting into a bullish trend. This, after the stock’s 20-day moving average crossed above that 50-day to form a “silver cross” pattern.
This simple technical patter tells us that Uber’s shares are gaining positive momentum.
While that is bullish for the stock, maintain a cautious outlook as we head into the end of July. Last quarter, Uber missed their earnings target and disappointed investors with their as gross bookings outlook.
Intel
Intel (INTC) shares rose 1.2% on Friday as the stock closed out the second quarter of 2024 with losses of 29%. The move on Friday isn’t why this stock is interesting, it’s the lack of movement over the last month.
Intel shares have been trading in an incredibly tight 3% range between $30 and $31 since the beginning of May. This is an incredibly rare situation for Intel stock that displays a current danger for Intel.
The tight range trading is due to incredible support at $30. This round number has held the shares up from additional selling in all three of the last three months.
To say that $30 is a critical support level is an understatement.
Intel will report their next quarterly earnings report on July 25. Last quarter’s report beat EPS expectations with slightly lower revenue, but the biggest Driver for Intel is the company’s renewed focus on AI chips and the construction of new manufacturing plants in the U.S. as part of the Biden Administration’s CHIPS ACT.
Expect that report to be the difference between the stock going to $20 or $40 before the end of August.
