12 Stocks Jim Cramer Recently Talked About In His “Idea-Driven” Market

2. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders In Q1 2025: 81

NIKE, Inc. (NYSE:NKE) is a well-known American athletic apparel company. Its shares are up by a modest 3.7% year-to-date, primarily on the back of a massive 22% jump since late June. NIKE, Inc. (NYSE:NKE)’s stock has struggled in 2025 due to the potential impact of tariffs on its business due to the firm’s global supply chain. However, the shares gained in June after NIKE, Inc. (NYSE:NKE)’s fiscal fourth quarter EPS and revenue of $0.14 and $11.10 billion beat analyst estimates of $0.13 and $10.72 billion. Investors were also bullish after CEO Elliot Hill commented during the earnings call that NIKE, Inc. (NYSE:NKE)’s worst days were behind it and the firm would continue to improve future performance. However, Cramer asserted that the strong share price performance was partly also due to an idea-driven market:

“Let’s take the case of, say, Nike. Okay. So Nike reports a good number. Now the stock will typically be up three. Now it’s up 15. Okay because people are saying ooh I want to be in Nike. Now what I’m saying is I can ignore that and focus 100% on the ten basis points that will no doubt move within the next 24 hours. People don’t even know what a basis point is anymore. Do you think a millennial knows what a basis point is? A basis point. Yeah.”

Earlier, the CNBC host shared he was conflicted about NIKE, Inc. (NYSE:NKE):

“I’m conflicted on Nike. On the positive side, the new CEO has a clear strategic plan to turn things around by focusing on running, basketball, football, training, and sportswear…

I simply think that the stock is more de-risked than it’s been in quite some time after two consecutive kitchen sink quarters where management did everything they could to reset expectations… All that said, while there are real positives here, including indications that China’s actually stronger than you would expect, I find it hard to get too bullish on Nike because this brand just ain’t what it used to be. In particular, I worry about the competition in athletic footwear, which has long been Nike’s bread and butter… It also didn’t help that Nike got pretty aggressive with its pricing…

So here’s where I come down on Nike: I believe it can mount a comeback, but I also think that a meaningful complete turnaround could take a longer time than expected. If you’re tempted to play a turnaround here, and I don’t blame you, I would start with a small position. That way, if something else goes wrong, you can buy more into weakness, pyramid style, or you can just cut your losses. And if Nike reports a good quarter with healthy guidance next month, well, you’ll get a chance to capture some upside.

The bottom line: I am optimistic that the worst is indeed behind Nike, or at least will be soon. And I think there’s a good chance for a comeback, especially with a seasoned hands-on Nike veteran like Elliott Hill at the helm. That said, I don’t have a ton of conviction in the turn happening quickly, so I’d advise you to start slowly with a small position and only buy more if Nike gives you a good reason to pull the trigger.”