Nike Stock Plunges 15% After Cramer’s Bullish Call – This is Why You Should Care

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Nike (NKE) shares took a dive of 15.5% on April 1, because nothing says “good times” like a fiscal Q3 report that looks good on the outside, but is practically bursting with profit weakness underneath, like a poorly wrapped burrito.

This stock nosedive marked the second-largest single-day loss in 25 years, sending Nike down to a price not seen in over a decade, near $44.63. Yes, that’s right, folks – this wasn’t just a dip. This was a full-on belly flop into the deep end.

Cramer’s Call: The Instant Meme We Never Knew We Needed

Just minutes after Nike unleashed its Q3 results on March 31, CNBC’s Mad Money host, Jim Cramer, tweeted about how everything looked positive for the stock. Because, of course, that’s what we all want to hear right before a massive crash.

Got to drill down on Nike but so far so good

– Jim Cramer (@jimcramer) March 31, 2026

Within seconds, Twitter exploded, seizing Cramer’s optimism like a dog on a tennis ball and using it as a red flag, signaling to everyone that maybe, just maybe, things were about to go spectacularly wrong. Ah, yes. The “Cramer Curse” strikes again!

The Inverse Cramer Tracker ETF (SJIM), which was launched in 2023 with the bold idea that betting against Cramer’s picks might be your ticket to a luxurious retirement, was already getting a workout. A whole flood of replies followed, mocking Cramer’s call, posting charts of the after-hours plunge, and sharing screenshots that made the stock’s drop look like a reality TV show crash landing.

And just to add a bit of drama to the situation, Barchart confirmed the historical destruction, noting that NKE had just experienced its second-largest loss in 25 years. Because, why settle for a small catastrophe when you can have a truly spectacular one?

BREAKING 🚨: Nike$NKE obliterated for its 2nd largest loss in the last 25 years 📉📉📉

– Barchart (@Barchart) April 1, 2026

Yes, indeed. The NKE stock took a nosedive, reaching depths last seen in October 2014. And as of this very moment, Nike stock is worth a whole $44.62. So, if you’re holding onto NKE with a sense of optimism, you might want to double-check if you’ve been duped by a really bad magic trick.

Earnings Beat? More Like Earnings Cheat

Let’s not kid ourselves here. Nike may have reported a revenue of $11.28 billion, which is technically above expectations, and earnings per share of $0.35, beating the consensus estimate of $0.28. But when you dig deeper, you’ll find that underneath the glossy earnings report, things are looking a little… less shiny.

Net income plummeted by 35% year-over-year, coming in at a mere $520 million. Gross margin? Down by 130 basis points to 40.2%. And let’s not even get started on the North American tariffs and endless promotions that did their part in making sure that margin stayed flat. It’s like a full-on corporate diet. Not the good kind, though.

But the real gut-punch came in the form of Nike’s forward guidance. CFO Matt Friend casually mentioned that Q4 sales would decline by 2% to 4%, when everyone was hoping for a modest 2% growth. And, of course, Greater China revenue is expected to drop about 20%. Because why not make the situation even more interesting?

But wait, there’s more! Nike Direct sales took a 7% hit, and digital revenue slid by 9%. Converse? Oh, that’s fun. They lost 35%, plunging to $264 million. So much for profit margins, eh?

Turnaround? More Like Turned Around and Walked Away

CEO Elliott Hill, who took over from John Donahoe in late 2024, has been calling this a “long-term rebuild.” Which is just code for “things aren’t looking so hot, but trust us, eventually, they might.” The constant quarterly letdowns are starting to test the patience of investors who are beginning to wonder if it’s time to break out the last-resort trick-praying for a competitor to implode.

With the likes of On Running, Hoka, and Adidas continuing to erode Nike’s market position, the road to recovery seems a bit like a long walk on a beach full of broken glass. NKE is now trading 71% below its all-time high, and it’s down about 29% year-to-date. You can practically hear the sound of investors clutching their pearls in the background.

With no margin recovery expected until Q2 of fiscal 2027, the future of the once mighty sportswear giant is looking about as clear as mud. Will they pull off a miraculous comeback? Or will this just be a slow-motion disaster for the ages? We’ll find out, but until then, don’t hold your breath.

Nike’s next earnings report, covering fiscal Q4, is expected in late June 2026. Don’t say we didn’t warn you.

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2026-04-02 09:46