Nike Declines; FedEx Edges Lower; Oracle Rallies on TikTok Deal
Dec 19, 2025
Nike's shares took a hit with disappointing sales projections, particularly in China and for Converse. FedEx's mixed performance showed cost challenges despite an earnings beat, as it grapples with grounding planes. Meanwhile, Oracle's stock surged following news of its leading role in establishing a U.S. joint venture for TikTok, paving the way for significant American ownership. Excitement surrounds the TikTok deal, but questions linger about the algorithm's future amidst regulatory approvals.
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Nike Faces China And Converse Headwinds
Nike warned third-quarter revenue would decline with weakness in China and Converse dragging results.
The company is seeing North America progress but faces broader international and brand-specific headwinds.
question_answer ANECDOTE
Changing Shoe Preferences At Home
Paul Sweeney recalled kids preferring newer shoes over Chuck Taylors as an example of changing tastes.
He used that personal observation to illustrate why Converse sales plunged 30% in the quarter.
insights INSIGHT
FedEx Profits Mask Ongoing Cost Pressures
FedEx beat 2Q estimates and raised the low end of its profit outlook but still faces notable cost headwinds.
Grounding MD-11 planes and weakness in less-than-truckload freight contributed to large earnings hits and ongoing pressure.
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On this episode of Stock Movers: - Shares of Nike (NKE) fell as much as 10 percent in premarket trading as the sportswear retailer’s third-quarter guidance disappointed investors, with its turnaround hampered by weak sales in China and the Converse brand. It expects third-quarter sales to be down low-single digits, and gross margins to shrink by roughly 2 percentage points due to tariffs. North America business — a bright spot for fiscal 2Q — is expected to grow more slowly in the third quarter as product liquidation will no longer provide a big sales boost. - Shares of FedEx (FDX) edged lower in the early session as the shipping firm upgraded FY targets, but to a lower magnitude than the 2Q earnings beat as it suffers from a string of cost headwinds including the grounding of its MD-11 planes. Analysts are mostly positive on 2Q results that are boosted by peak season demand, cost reductions and customer wins in B2B health care. The non-core freight division that’s scheduled to be spun off remains under pressure. - Shares of Oracle (ORCL) rallied ahead of the US market open as TikTok’s long-delayed plan to separate from Chinese parent ByteDance Ltd. was put in motion Thursday when the video sharing sensation said it’s being bought by a group of buyers, led by Oracle. TikTok Chief Executive Officer Shou Chew told employees that the company and ByteDance signed binding agreements to create a US joint venture majority-owned by American investors, according to an internal memo reviewed by Bloomberg. Chew wrote that he was “pleased to share some great news” and said agreements with Oracle, Silver Lake Management and MGX have been signed. The deal is expected to close on Jan. 22, 2026, though Chew added that “there’s more work to be done” before then. Chinese regulators have yet to say whether they’ll approve the transaction.
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