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Nike shares fell to a 12-year low of $35.16 ahead of its fiscal first-quarter earnings.
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DraftKings shares dropped to a three-year low as competition from prediction markets weighed on the stock.
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Mattel shares fell to nearly a six-year low after CEO Ynon Kreiz’s exit.
Nike Inc. (NKE), DraftKings Inc. (DKNG) and Mattel Inc. (MAT) stock came under pressure Wednesday as investors weighed weak demand, regulatory risks and leadership uncertainty.
Nike slid more than 1% while DraftKings and Mattel stocks fell 3% and 4%, respectively.
Nike Heads Into Earnings Under Pressure
Nike stock crashed to a twelve-year low of $35.16 as investors prepared for the athleticwear giant’s fiscal first-quarter results on Thursday. The stock has struggled as markets look for clearer evidence that the company can revive sales, particularly across its wholesale business and North America.
Short sellers have also built a sizable position, with short interest reaching about 87 million shares. However, Jefferies remains among the firms taking a more constructive stance, expecting a potential earnings beat and improvement in Nike’s business over time. On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory.
DraftKings Faces Industry-Wide Pressure
DraftKings stock fell to a three-year low of $18.95, extending losses across online gambling stocks. The sector took a hit after Brazil moved to prohibit online betting, putting additional pressure on major operators, including Flutter Entertainment plc (FLUT), FanDuel’s parent company.
The pressure on DraftKings extends beyond Brazil. Prediction-market platforms such as Kalshi and Polymarket are creating another competitive pressure. Needham’s sports volume data showed that Kalshi handled 76% of sports prediction-market trading in the NFL’s opening week, while DraftKings’ DKeX accounted for 3%.
However, retail sentiment around the stock remained ‘extremely bullish’.
Mattel Deals With Sudden CEO Exit
Mattel stock dropped to nearly a six-year low of $12.44, after the company announced that Chairman and CEO Ynon Kreiz is set to leave the toy maker on Oct. 2 and move to Paramount Skydance (PSKY).
Kreiz is expected to become co-CEO with David Ellison after Paramount Skydance (PSKY) completes its Warner Bros. Discovery (WBD) deal. Mattel has chosen board member Roger Lynch as its new CEO. Meanwhile, retail sentiment improved from “bullish” to “extremely bullish.”
