Nike Is Down 75%. What History Says About This Decline

Nike Just Hit a 75% Drawdown. Here is What History Says About This Decline.

NIKE, Inc. (NKE) has reached a drawdown of -75.0% as of May 17, 2026. While the stock remains in the red zone, our data shows a shift in the Drawdown Severity Score™, which currently sits at 15.2. This specific score indicates a historic level of contraction compared to the asset's typical price behavior.

Current Drawdown Depth and Duration

The current decline for NIKE, Inc. (NKE) has lasted 1,590 days. During this period, the stock has fallen from its all-time high of $167.31 to its current price of $41.88. This represents a significant departure from the historical norms we have observed for this ticker since its inception.

Our data shows that across 308 total historical drawdown events, the average maximum drawdown for NIKE, Inc. (NKE) is only -4.8%. The current -75.0% retracement is more than fifteen times the magnitude of the average historical dip. Furthermore, the average duration of a drawdown for this stock is 41 days, meaning the current 1,590-day cycle is nearly 39 times longer than the historical average.

The Drawdown Severity Score™ of 15.2 places this event in the "Historic" category. This classification is reserved for price movements that exist far outside the standard deviation of an asset's typical volatility profile. Even though the stock remains in the red zone, tracking the movement of this severity score provides context on whether the downward momentum is accelerating or stabilizing relative to its peak distress levels.

Historical Context of Major Contractions

To understand the current position of NIKE, Inc. (NKE), we must look at how the stock has performed during similar periods of extreme stress. Our data indicates that NIKE, Inc. (NKE) has dropped by 40% or more only 5 times in its entire trading history. The current 75% drawdown is a rare occurrence that surpasses the threshold of most previous secular declines for the company.

In those 5 instances where the stock fell by at least 40%, the average duration of the comparable drops was 946 days. The current cycle has already exceeded that average by 644 days. This extension in time suggests that the current recovery process is taking longer than the historical precedents for major corrections in this specific ticker.

When an asset enters the red zone and maintains a Drawdown Severity Score™ above 15.0, it indicates a period of prolonged price reset. Historical comparisons allow us to see that while 40% drops are infrequent, they generally require years, not months, to resolve. The current data shows that NIKE, Inc. (NKE) is currently navigating its most protracted drawdown period on record.

Data Scope and Analysis Framework

This analysis of NIKE, Inc. (NKE) relies exclusively on verified price, drawdown, severity, and duration data. We do not incorporate fundamental metrics, earnings reports, or external market narratives into this specific assessment. The Drawdown Severity Score™ is a proprietary calculation based on the relationship between the current price action and the historical volatility of the asset.

By focusing strictly on the drawdown data, we provide a mathematical framework for risk. Our data shows that the current price of $41.88 is the result of a multi-year decline that has redefined the stock's risk parameters. The severity score serves as a gauge for how extreme the current environment is relative to every other drawdown the stock has experienced over its history.

The historical comparison data used here is anchored to the specific count of 308 drawdown events. This large sample size provides a robust baseline for determining what constitutes a "normal" pullback versus a "historic" event. At -75.0%, the current state of NIKE, Inc. (NKE) is objectively classified as the latter.

Monitoring Severity Thresholds

For investors tracking the recovery of NIKE, Inc. (NKE), the Drawdown Severity Score™ will be the primary indicator of a shift in trend. A move out of the red zone would require a sustained improvement in price that reduces the drawdown percentage and lowers the severity score into more moderate territory.

We continue to monitor the 1,590-day duration to see if it begins to plateau. A reduction in the drawdown depth from -75.0% toward the -40% historical threshold would be the first data-driven signal of a transition toward a recovery phase. Until then, the stock remains in a historic drawdown state according to our proprietary metrics.

The price level of $167.31 remains the ultimate benchmark for a full recovery. Any price movement below the current $41.88 would further increase the Drawdown Severity Score™ and extend the record-breaking duration of this event. We will update the data as these thresholds are crossed or as the stock begins to close the gap toward its previous highs.