👉 The Continued Downfall of Nike

Together with XFunds

👉 Week in Review — Too Long; Didn’t Read:

Key Earnings Announcements:

• Nike’s margins collapsed due to digital weakness, China softness, and tariffs.

Investor Events / Global Affairs:

• OpenAI’s valuation hit $500 Billion, surpassing Elon Musk’s SpaceX.

• Spotify appointed Co-CEOs as Daniel Ek will move into Chairman role.

• Intel stock rose on reports of talks to bring AMD onboard as a customer.

• Exxon plans to eliminate 2,000 positions as part of global restructuring.

Economic Updates:

• The government could remain closed beyond this week.

• The jobs report wasn’t released due to the shutdown, but data continues to suggest limited hiring.

Happy Sunday.

In case you’re new around here, I’m Austin Hankwitz — I’ve been publishing earnings analysis on publicly-traded companies for over half a decade. My podcast, Rich Habits, has hit #1 on Spotify’s Business Podcast chart four times since it’s inception only two years ago.

At the start of 2023, I began my journey of building a $2M Dividend Growth Portfolio from scratch. This twice-weekly newsletter is how I keep you all updated on my progress.

For me, early retirement means $2M invested. For you, it might mean something else. Regardless of your early-retirement number — I hope these weekly synopses of my portfolio progress + what’s been happening in the markets helps you on your own journey.

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👉 Portfolio Updates (YTD Performance):

The stock-only portion of my portfolio is up +19.3% YTD, surpassing the S&P 500’s +14.4% by roughly 5%. This stock-only portfolio is being carried higher (+42.8%) by the “Long Risky” subsection of the portfolio — a list of high-octane growth stocks.

This stock-only portfolio will pay me $1,303 in dividend this year, which is exciting!

Speaking of dividends, the monthly income section of my portfolio is smooth sailing — delivering roughly $800 / month in income on a consistent basis.

Who else is pumped for Q4 — specifically as it relates to cryptocurrency?

Bitcoin is going to hopefully surpass the $135-150K range, Ethereum the $5,500-7,000 range, and Chainlink the $35-40 range. I’ll be taking advantage of this “blow off top” in the markets and cashing in on 80-90% of my crypto portfolio to re-balance my net worth away from the asset class (as it makes up a significant portion).

👉 Key Earnings Announcements:

Nike’s margins collapsed due to digital weakness, China softness, and tariffs.

• Nike Inc. (NKE)

Key Metrics

Revenue: $11.7 billion, an increase of +1% YoY

Operating Income: $922.0 million, compared to $1.3 billion last year

Profits: $727.0 million, compared to $1.1 billion last year

Earnings Release Callout

“This quarter NIKE drove progress through our Win Now actions in our priority areas of North America, Wholesale, and Running. While we’re getting wins under our belt, we still have work ahead to get all sports, geographies, and channels on a similar path as we manage a dynamic operating environment. I’m confident that we have the right focus in Win Now and that our new alignment in the Sport Offense will be the key to maximizing NIKE, Inc.’s complete portfolio over the long-term.”

My Takeaway

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