Nike shares fell in extended trading Tuesday after a double-digit earnings beat and news that the company had a 15 percent increase in profit.
The reason is simple, according to Jan Kniffen, CEO of J. Rogers Kniffen WWE and a CNBC contributor. The stock “has had a big run-up.” Kniffen’s been positive on Nike for a year now, but he believes the move up in the name may be over.
Going forward, investors will need to watch out, warns Stacey Widlitz, president of SW Retail Advisors, because competitor Adidas will be releasing new, more exciting products. Still, she adds, if you’re a long-term buyer in this space, “Nike is the one to own.”
Guy Adami, a CNBC “Fast Money” trader agrees, saying the numbers indicate margins will be good next quarter. For that reason, he believes investors should buy this sell-off.
Nike shares were down more than 3 percent in after-hours trading Tuesday.
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