Apple CEO Tim Cook made a significant show of confidence in Nike this week, purchasing roughly $3 million worth of the sportswear giant’s stock in a move that nearly doubled his personal stake in the company. The investment by Tim Cook, who has served on Nike’s board since 2005, comes at a critical moment as Nike attempts to execute a turnaround strategy under CEO Elliott Hill.
Tim Cook Purchase Sends a Market Signal
According to a regulatory filing, Tim Cook bought 50,000 shares of Nike at an average price of $58.97, bringing his total holdings to approximately 105,000 shares as of Dec. 22. The filing revealed the purchase was the largest open-market stock buy by a Nike executive or director in more than a decade.
Nike shares jumped nearly 5% following the disclosure, reflecting investor optimism tied to Cook’s move. Jonathan Komp, an analyst at Baird Equity Research, described the transaction as a strong endorsement of Nike’s leadership direction.
“We see Cook’s move as a positive signal for the progress under CEO Elliott Hill and Nike’s ‘Win Now’ actions,” Komp said.
Nike Faces Headwinds in China and Digital Sales
The timing of the purchase is notable, as Nike recently reported weaker quarterly margins and declining sales in China. Direct sales in the region fell 18%, while Nike Digital—its e-commerce arm—plunged 36%. Management cited soft store traffic, weak sell-through, and an overreliance on promotions that diluted the brand’s premium positioning.
