Nike brand store in Shanghai, China

Nike extends its rally as surprise Q1 beat raises turnaround hopes

The sneaker giant extended its rally as analysts warm up to signs that the brand’s reset may be sticking.

10/1/25 10:59AM

Nike climbed nearly 6% Wednesday, gaining steam after rising Tuesday in aftermarket trading. The gains came as investors and analysts processed the sneaker giant’s stronger-than-expected Q1 results, which topped Wall Street forecasts and delivered a surprise revenue gain.

On the company’s call with investors, management was quick to caution that the recovery won’t be linear, pointing to pressure from tariffs, discounting, and stubbornly high costs. Still, there were some clear bright spots: wholesale looked solid, North America held up well, and a refreshed product lineup seems to be resonating with shoppers.

Wall Street analysts are also lacing up for a turnaround, highlighting Nike’s cleaner inventory and early evidence that demand is stabilizing.

Piper Sandler nudged its price target on the stock up to $84 from $80 and reiterated its “overweight” (buy) rating.
TD Cowen bumped its target to $86 from $85 while sticking with a “buy” rating on the stock.
JPMorgan shifted gears, upgrading its rating from “neutral” to “overweight” (buy) and lifting its price target to $100 from $93.

Shares of Nike are down about 17% over the past 12 months.

Matt Phillips6h

DraftKings moves to counter prediction market threat

DraftKings rose after hours, following news that it is buying Railbird in an effort to address the competitive threat from prediction markets that has weighed on its share price — and that of FanDuel parent Flutter Entertainment — for weeks.

The deal is then latest example of the increasing linkages and overlap between worlds of financial markets, gambling, and prediction markets.

Earlier this month, ICE — the parent company of the New York Stock Exchange and the ICE futures markets, among others — announced it would invest up to $2 billion in prediction markets company Polymarket.

And Robinhood shares have recently gotten a lift from its ongoing partnership with prediction market platform Kalshi, which has seen growing uptake of its events contracts that allow buyers to take positions on football games.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

By and large investor excitement over prediction markets — which has picked up since the start of football season — has seemed to come at the expense of Flutter and DraftKings, the two companies that dominate US sports betting.

Over the last three months through the end of regular trading on Wednesday, DraftKings and Flutter were down 23% and 18%, respectively, while the S&P 500 is up about 7%.

DraftKings acquires predictions platform Railbird

The deal is then latest example of the increasing linkages and overlap between worlds of financial markets, gambling, and prediction markets.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

Over the last three months through the end of regular trading on Wednesday, DraftKings and Flutter were down 23% and 18%, respectively, while the S&P 500 is up about 7%.

Max Knoblauch

As Netflix drops on earnings miss, it’s investing just $0.40 into content for every $1 of revenue

Netflix shares fell in after-hours trading on Tuesday, following the release of the streamer’s third-quarter earnings report.

Toby Bochan, Luke Kawa

US stocks go nowhere amid big rotation out of gold and into fake meat

The calmest session for the S&P 500 in over a month.

Jon Keegan

11h

OpenAI releases Chrome-competitor browser “ChatGPT Atlas,” sending Google shares down

ChatGPT currently poses little threat to Google’s search business, but an OpenAI browser — and the data that comes with it — could change everything.

Luke Kawa12h

The no-fundamentals, high-volatility winning trades are reversing hard

The volatile, speculative momentum trades that have been on fire in recent months are getting smoked.

The SPDR Gold Shares ETF is on track for its biggest daily loss since April 2013, as of 10:28 a.m. ET.

And Goldman Sachs’ baskets of “high beta momentum longs” and “non-profitable tech” stocks, which have pretty much been the exact same line for two months, got dumped last Thursday and are down big again today.

D-Wave Quantum, Planet Labs, and Navitas Semiconductor are some of the stocks that feature in both of Goldman’s baskets and are down more than 2% as of 10:24 a.m. ET.

All of these groups have been handily outperforming the S&P 500 for an extended period of time despite by their very nature having more hype than actual track records — in terms of producing profits for shareholders — to speak of. Gold, obviously, generates no income. Nonprofitable tech stocks aren’t really in a position to spin off cash they don’t have to their owners. And, as mentioned, high-beta momentum and nonprofitable tech stocks have pretty much traded the same!

It’s difficult to pinpoint a fundamental catalyst for why speculative momentum trades suddenly turn on a dime, just as it’s often tricky to identify why they went on such a mammoth run in the first place. Perhaps the onset of earnings season — which gives us the opportunity to assess fundamental progress — means that right now, there’s more attention being paid to “line go up” when it comes to revenues and profits, and that’s taking away from the mindshare on “line go up” with respect to recent share price performance.

Nike extends its rally as surprise Q1 beat raises turnaround hopes

More Markets

DraftKings moves to counter prediction market threat

DraftKings acquires predictions platform Railbird

The no-fundamentals, high-volatility winning trades are reversing hard

Latest Stories