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Hidden risks with global supply and demand


Nike seems having a stellar quarter despite of inflation and rising material cost, a narrative that exceeded Wall Street expectation in many way.

We turned to our Artificial Creative Thinking Machine to discover risks that may not be apparent. The stance taken by Nike in China and the heavy bet that it took will result in a large set back if America's tension with China is real. Considering the unreconcilable issues with Hong Kong, Xinjiang, South China Sea, Taiwan and China's anti-sanction law; it is a big bet to rely China for revenue or supply chain. That would make Nike's future earning questionable. Following is a quote from NKE's latest earnings call transcript:

"... we are a brand of China and for China. And the biggest asset we have in China is the consumer equity."

ELAINE analysis of Nike latest earnings call (2021/06/24). Click to view details