In this comprehensive stock investing guide, we will teach you how to buy Nike shares through a regulated stock brokerage. We will start by providing you with an overview of the standard stock investing process. We will then break this down and cover each step in detail.
By the end of this guide, you will know how to buy your first Nike stock. You will also know where to buy these shares and what to look for when searching for the best share broker. You will have learnt how the NKE stock has performed in the past and what factors will influence its future price action.
More importantly, you will have decided whether Nike shares are worth buying in 2023.
Read on to learn everything you need to know before investing in Nike.
Your capital is at risk. Other fees apply.
Throughout the rest of this investing guide, we will go over the above steps in detail and tell you everything you need to know before investing in Nike.
The Nike (NKE) Stock Buying Guide – Reviewed
Step 1: Decide Where To Buy Nike (NKE) Stock
Nike is one of the most visible brands in the world. It is also massively popular in the investment community, and these have helped it list with arguably all the most popular stock trading platforms. While this gives you a range of options when deciding where to buy Nike shares, it doesn't make choosing the best share broker any easier.
So, how do you find an online trading platform where you can buy Nike shares? Well, start vetting all the popular brokers thoroughly while paying close attention to these key features:
- Fees and commissions: Before registering a trader account with a broker, check all the fees and commissions levied on their platform. Assess the impact these will have on the profitability of your Nike investment. Only register an account with the most affordable broker.
- Regulation and reputation: Only register a trader account with a regulated broker. This broker should also be of solid repute with regard to user-friendliness, reliability, and customer service.
- Account minimums: Check if your preferred broker supports fractional share ownership. Confirm the minimum deposit and trade limits as well as the supported payment methods. Only register an account with them if they support your favorite payment option and you can afford their minimum deposit/trade amount.
- Tools and resources: The ideal Nike shares broker should also maintain a resource-rich trading platform. They should integrate as many premium trading, analysis, and risk management tools as possible into their trading platform.
- Security: Confirm your preferred broker's commitment to the security of client funds and data. The ideal stock broker should have solid controls regulating access and sharing of sensitive client data. They should also hold your funds in a segregated bank account and insure your deposits with the likes of FDIC and FSCS.
That said, our analysts have vetted hundreds of online stock trading platforms, so you don't have to. Ultimately, they settled on these two as the best places to buy Nike stock in 2023.
Below, we discuss them in detail to understand how they work and what makes them the best NKE stock broker.
eToro – Best Nike Stock Broker for Affordability and Copy Trading
eToro is a commission-free online trading platform. This implies that when buying Nike shares from the platform, you will only have to part with a competitive spread. It also supports fractional share ownership, and you can start investing in Nike with as little as $10. The only other fee you may have to pay when trading NKE stock here is a variable swap fee for margined trades that remain open overnight or the fixed $5 fee charged on withdrawals.
eToro also tops our choice of the best Nike shares broker because of its social and copy trading tools. Through social trading, eToro platform users get to interact with one another, share ideas, and receive mentorship.
Copy trading, on the other hand, allows eToro platform users to earn passively. You get to make money as a copy trader by mirroring the trade settings of highly successful investors in your account. You could also earn a reward from eToro if you are an expert trader and allow other platform users to copy your trades.
Other factors that make eToro one of the best places to buy Nike shares include its user-friendliness and innovative trading platform. It, for instance, only takes a few minutes to create a share trader account and have it approved on eToro.
The brokerage then runs one of the most intuitive multi-asset trading platforms. It is available as a web trader and as a mobile trading platform. But even more importantly, it features a wide range of educational resources and premium trading tools that make it appealing to both novice and expert traders.
Your capital is at risk. Other fees apply.
Capital.com – Best for Active Traders
We consider Capital.com to be one of the best Nike shares brokers because of its highly innovative trading platform. For starters, Capital.com is a multi-platform brokerage that runs not only proprietary trading platforms but also supports such universal trading platforms as MetaTrader 4 and TradingView.
Its proprietary trading platforms are popular for their ultra-fast transaction processing speeds and support for a wide range of highly advanced trading and analysis tools.
Universal trading platforms like MT4, on the other hand, are popular with investors because they let you automate your trades with expert advisers. They also support copy trading and expose you to an even wider range of premium research, analysis, trading, and risk management tools.
Additionally, Capital.com appeals to active Nike share traders because of its affordability. You, for instance, only need $20 to start trading shares on the multi-asset brokerage. But you can still enter into relatively large positions – exposing you to potentially higher returns – even with little capital when you take advantage of the 1:5 leverage advanced by the broker.
Other factors that make Capital.com stand out among the best Nike shares brokers include excellent customer service, support for a range of payment options, and low trading fees.
The broker's customer service team is easily accessible on live chat, support tickets, social media, WhatsApp, and even on the phone.
You can also deposit or withdraw in/out of Capital.com via such supported payment options as bank cards, wire transfers, and eWallets like PayPal.
Lastly, Capital.com is a commission-free broker and doesn't charge a deposit/withdrawal processing fee. Therefore, you will only have to deal with a competitive spread and swap fees when buying Nike shares on the platform.
Step 2: Research Nike (NKE) Stock
After deciding where to buy Nike shares, it is now time to gather as much information as possible about the company and its share price performance. Such information helps you identify the factors that have the most influence on NKE stock price. This, in turn, helps you decide the best time to enter or exit a market position.
What is Nike?
Nike is an American multinational company specializing in sportswear. The company designs, develops, manufactures, and markets apparel, footwear, and sports equipment all over the world. It was founded in January 1964 by Bill Bowerman (then sports coach at the University of Oregon) and Phil Knight (then a student and track athlete at the said university).
Originally known as Blue Ribbon Sports (RBS), the company served as a distributor of Japanese shoe maker – Onitsuka Tiger. Throughout the 1960s, however, RBS experimented with different shoe designs that it intended to manufacture.
In 1971, RBS terminated the distribution deal with the Japanese shoemaker and renamed it Nike (Greek goddess of victory). In 1972, Nike introduced their first mass-manufactured shoe - the 'Nike Cortez' which became an instant hit among runners.
In June 1971, Nike settled on the all-popular Swoosh– designed by Caroline Davidson – as the company logo. They even patented it six months later. It was, however, not until 1988 that Nike came up with the "Just Do It" slogan.
Half a decade after its establishment, Nike has gone on to become one of the most recognizable companies in the world. It has also morphed into one of the most valuable companies in the world, with a market capitalization of $180+ Billion. Note the 'Nike brand alone was worth more than $33 Billion in December 2022 – which makes it the most valuable brand in the sports industry.
Nike has recorded sustained growth in all areas of operation since its establishment more than 50 years ago. The company's global sales volume, gross revenue, and net income have all been uptrending. For example, Nike's revenue has more than tripled in the last 16 years – shooting from $15 Billion in 2006 to more than $46 Billion in 2022. During the same period, the company's annual net income grew 4.5X – from around $1.4 to more than $6 Billion.
Much of this could be attributed to business reorganization and change of management. Throughout the late 2000s, Nike started refocusing its attention on core Nike activities and offloading most of the competitors that it had acquired along the way. These include Umbro, Bauer Hockey, Cole Haan, Hurley International, and Starter. At the time of writing, Nike has only retained one sportswear-related subsidiary – Converse Inc.
Nike has also consistently paid dividends since 1984 – distributed quarterly. This makes it one of the most reliable sources of passive investing income. In 2022, Nike reported a dividend yield of 1.17% with a distribution of $1.36 per share.
Nike Stock Historical Price Performance
Nike went public in December 1980 when it was listed with the New York Stock Exchange (NYSE). Each NKE share was sold for $22 at IPO, which helped the sportswear brand raise $12.5 Million. Since then, NKE has undergone seven 2-for-1 stock splits, ensuring that each original Nike stock is currently divided into 178 equal Nike shares. This gives the stock an adjusted IPO price of $0.18
Just like its revenues and sales volumes, Nike's stock has maintained an overall uptrending price action since its IPO. It first broke above $1 in 1990 but would it take 14 more years to break above $10.
The company has, however, experienced massive growth in the last decade. It, for instance, only made a solid hold of $20 in late 2010 and raced past $50 less than five years later. It went on to break above $100 in December 2019 before rallying further and setting its current all-time high of $188 in October 2021.
But as the bears took over the stock market in 2022, NKE shares started price-correcting, and by December, the sportswear brand had dumped close to 40% of this peak price.
Read Also: Nike (NKE) Stock Price Prediction
Factors Affecting Nike Share Price
NKE is a mildly volatile stock. This means that if you are to make money investing in this sportswear company, you need to understand the factors influencing its stock price.
Looking into 2023, here are a few of the factors that we believe will have the most impact on the John Donahoe-led corporation:
- Company financials: Nike is both a growth and dividend stock. Therefore, positive revenue gains and higher dividend yields will almost always lead to rallying stock price, while declining revenues and low dividends will cause them to crash.
- Sales volumes: High sales volumes don't just translate to higher revenues. They also speak volumes about the brand's appeal to consumers, which investors use to assess its future outlook. Increased sales create an illusion of a solid future outlook for the brand, which pushes up share price.
- Competitor activity: Nike faces stiff competition from the likes of Adidas and Puma. Competitors' growth often means ceding of market share for the sportswear corporation, which has a detrimental impact on its stock price.
- Market trends: One of the primary causes of the plummeting NKE share price is a bearish stock market. Moving into 2023, analysts anticipate a global recession that would see NKE shares dump further.
- Industry trends: Nike's stock price will also be influenced greatly by the developments within the sportswear industry. NKE will tank if the industry stocks are dumping and rally if they are gaining.
Your capital is at risk. Other fees apply.
Step 3: Open A Share Investor Account And Buy Nike (NKE) Stock
After learning about the different factors affecting Nike stock price and how to factor them into your NKE trades, it now is time to learn how to buy Nike shares.
Here is a beginner's guide that will teach you how to acquire your first Nike share through the all-popular and highly reliable eToro brokerage.
Open a stock broker account
Open the official eToro website on your browser or download the eToro mobile trader app. On either platform, click on the "Join Now" icon and complete the registration form that pops up.
eToro will ask for such basic personal details as your phone number and name, email address and country of residence, income source, and trading experience. You will also need to come up with a username and strong password for this account.
Verify your identity
eToro, like all regulated online brokerages, will ask that you verify your identity before you can begin depositing funds or trading. Furnish them with either a national ID, driver's license, or passport.
Log in to the now-approved eToro trader account and tab on the "Deposit Funds" icon on your user dashboard. A funding tab will pop up, indicating all the payment options available to you – often based on your country of residence.
Buy Nike stock
Hit the "Discover" tab on your dashboard, and from the supported assets - choose "Stocks." Use the search button to find Nike shares and tap the "BUY" option.
This brings up the trading tab that you can use to customize the transaction by indicating the number of NKE shares you wish to buy or how much you wish to invest in Nike. Press the "Open Trade" button to execute the investment.
Your capital is at risk. Other fees apply.
Nike Stock Strengths And Weaknesses
It is not enough to learn about the different factors affecting Nike stock price. You also need to ask yourself if Nike shares are really worth buying before hitting the 'BUY' button on your preferred online stock brokerage.
To help you answer this, we have come up with a few reasons for buying Nike in 2023 and a few more why this may not be the best time to invest in the sportswear brand.
Reasons to Buy Nike Stock in 2023
- Consistent growth: You may want to invest in Nike because it is a growth stock that has constantly grown its company revenue, stock price, and market share. Today, the company is leveraging technology (even launching n the crypto metaverse) to push more sales which leads to more revenue and higher stock price moving forward.
- Dividend yield: You may also consider investing in Nike today if you want a steady and tangible source of passive income. This is evidenced by the fact that Nike has diligently distributed dividends quarterly since 1984.
- Currently undervalued: Nike stock price have been on a sustained overall uptrend. And every time it suffered a slight pullback, its rebound was swift and always catapulted it to new heights. Seeing that it currently trades close to 40% below its last peak, you would be correct to assume that NKE is grossly underpriced.
Reasons Not to Buy Nike Stock
- Further loss: The fact that the majority of analysts and forecasters expect the world economy to enter into a recession in 2023 means that NKE stock price will most likely continue down trending. This means that today may not be the best time to buy Nike, especially for short-term investors.
- Over-dependence on the Chinese market: China has always been one of the biggest markets for Nike products. In 2022, for instance, the Asian giant contributed 17% of Nike's global revenue. But the Chinese economy is slowing down, and covid-19 occasioned lockdowns are expected to continue long into 2023. These will most possibly leave a significant dent in Nike revenues – which has a negative impact on NKE stock price.
Conclusion - How To Buy Nike Stock
Nike Corporation has only been around for slightly over half a decade. During this time, it grew to become one of the largest sportswear companies in the world. The Nike brand – the swoosh logo and the 'Just Do It' slogan – is also considered the most recognizable and valuable brand in the sports industry.
Since its establishment, Nike has enjoyed steady growth in global sales volumes, gross revenues, and net income. These have helped keep the NKE stock uptrending and ensured the sportswear brand pays dividends religiously for four decades.
Nike did, however, have a rough year in 2022. Its stock price lost close to 40% of the all-time high set in the last quarter of 2021. Nevertheless, given the corporation's large market share, brand popularity, and proven resilience – almost everyone expects it to rebound and possibly race to higher stock price levels. But the looming recession creates a level of uncertainty over when the Nike stock price will begin rallying again.
eToro – Buy Nike Stock With 0% Commission
Open an account with eToro, deposit some funds with USD, and finally – buy Shares from just $10.
Your capital is at risk. Other fees apply.
FAQs About How To Buy Nike (NKE) Stock
How can I buy Nike stock today?
It is simple, start by identifying a regulated and reliable trader account and create a share investor account with them. Fund this account, search for Nike shares and place a buy order.
Does Nike pay Dividends?
Yes, Nike has distributed dividends to shareholders – religiously – since 1984. In 2022, Nike's dividend yield was 1.17%, with annual pay of $1.36 per share.
Why did Nike's stock price fall in 2022?
The crash in Nike stock price can be attributed to several factors. These include the bearish market, down-trending sports industry stocks, a drop in gross profit, and a poor economic outlook for both North American and Chinese markets.
How much do I need to start buying Nike shares?
Only you can decide how much you can invest in Nike or any other company stock. We advise that this decision be informed by such factors as your risk tolerance, trading experience, understanding of Nike and sports industry stock performance, and the minimums set by your preferred broker.
Will Nike's share price recover in 2023?
No one can accurately tell when Nike's stock price will begin its recovery. The fact that a majority of analysts and forecasters expect the global economy to enter into recession in 2023 has convinced some investors that NKE can only start rebounding after 2024.