Investigating the Causes of the Decline in Nikes Share Price
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Investigating the Causes of the Decline in Nike's Share Price In this paper we investigate why Nike shares went down over the last quarter. Then we analyze possible causes for the devaluation and finally we look at possible ways to push the value of Nike stocks back up to or past its values at the beginning of the first quarter. Problem In the last economic quarter year, Nike shares went down 6% in value. The shares originally valued at $63.80 went down $3.70 to $59.50. This is bad news for the firm because it reduces the firm's capital, takes resources out of the firm and hence reduces its ability to produce. There are several causes for this drop in stock prices, each working synergistically with the other to create a profound overall effect. Causes During the third quarter Nike experienced overall growth in both sales and orders; however, the increments did not reach the predicted...

