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.

Nike is also shrinking portions of its business, aiming to cut more than $4 billion from classic footwear franchises by the end of the fiscal year. That reduction alone is expected to create a $550 million revenue headwind for the quarter.

Leadership, Strategy, and Board Influence

Despite the challenges, Cook’s confidence underscores his long-standing involvement with the company. He became Nike’s lead independent director in 2016 after co-founder Phil Knight stepped down as chairman. Komp noted that Cook “remains extremely close” with Knight and has advised Nike through major strategic decisions, including the appointment of Elliott Hill as CEO.

Hill has focused on revitalizing demand through innovation in performance sports and renewed marketing while repairing relationships with wholesalers such as Dick’s Sporting Goods.

Nike Investor Confidence Amid Declining Shares

Nike shares have fallen nearly 13% since reporting earnings on Dec. 18 and are on track for a fourth straight year of declines. Still, Cook’s investment—now valued at nearly $6 million—suggests belief in Nike’s long-term recovery.

Former Intel CEO and Nike board director Robert Swan also joined in, purchasing about $500,000 worth of Nike stock this week.

For more information, visit Nike’s Investor Relations page and Apple’s leadership profile for Tim Cook.