Bill Ackman’s Pershing Square Boosts Nike (NKE) Stake amid Challenges

Billionaire investor Bill Ackman’s Pershing Square Capital Management increased its stake in Nike (NKE) stock by 15% during the fourth quarter. The move reflects Ackman’s confidence in the sportswear giant’s long-term growth prospects despite recent challenges.

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Nike stock has dropped 28% over the past year. The company’s sales have declined in China, one of its key markets, due to higher competition from local brands and changing consumer preferences. Further, Nike’s recent Super Bowl ad featuring female athletes like Caitlin Clark, Jordan Chiles, and Sha’Carri Richardson stirred controversy. The ad focused on gender equality and women’s rights in sports. While some praised the ad for advocating social causes, others argued it was too political, leading to backlash and calls for a boycott. Managing the fallout from this controversy is another key challenge for the company.