The price of any individual stock though is mostly determined by hype. Revenue and concrete performance plays a part but hype is very much a driving factor and hype is fickle.
I think Nike lost some of its cool while the competition got better. For me, the turning point was walking into a Nike store and thinking their prices were way too high for what I was actually getting.
I reckon they'd be in a much worse position without Jordan. It's still a massive part of their appeal, even if its sales have slowed too.
And the stock market doesn't just look at today's revenue and performance. It also prices in what people expect to happen next. If people think a brand is losing its appeal, they won't necessarily wait for that to fully show up in the numbers.
> And the stock market doesn't just look at today's revenue and performance. It also prices in what people expect to happen next.