Motley Fool Money Nike’s Turnaround Story
6 snips
May 22, 2025 
Jim Gillies, an investment analyst known for his insights on turnaround stories, joins CEO Rajeev Goel of PubMatic, a leader in digital advertising. They discuss Nike's strategic return to Amazon and the unique challenges of corporate turnarounds, contrasting it with Peloton's recovery journey. The conversation delves into the transformative landscape of digital advertising, highlighting AI's role in performance marketing and cash flow metrics that define profitability, navigating the evolving economy.
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Nike's Market Strategy Reversal
- Nike's pull from Amazon was a strategic misstep as it limited access to the largest online marketplace.
- Returning to retail partners shows Nike's acknowledgment of the value in established distribution channels.
Be Patient with Turnaround Stocks
- Be patient with turnaround stocks; they often take longer than expected to improve.
- Start small with investments in turnaround stories and gauge progress over multiple quarters before increasing exposure.
Chipotle's Turnaround Journey
- Chipotle's turnaround began after severe food safety issues caused a huge stock drop and took years to stabilize.
- The company's revival accelerated only after founder Steve Ells was replaced by Brian Nichol from Taco Bell.
