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For long-term investors, the primary goal of investing is to generate solid returns that outpace the broader market. However, those who invested in Nike (NKE) over the past five years have experienced the opposite, as the company’s stock has significantly underperformed.
Over this period, Nike shares have dropped by roughly 13.7%. To put it in perspective, a $1,000 investment in Nike stock five years ago would be worth approximately $863 today. Even more striking, a $1,000 investment made just two years ago would have shrunk by 40.7%, leaving an investor with only $593. Over the past year alone, Nike stock has declined by 28.3%, significantly underperforming the S&P 500 Index’s ($SPX) 7% gain.