How to buy Nike shares
This guide will take you through how to invest in Nike shares, what to consider before you buy, the latest Nike news, Nike’s recent market performance, and the best online brokers to use if you decide to invest in Nike shares.
Compare the best platforms to invest in Nike shares
If you have all the information you need and just want to invest, you can buy Nike shares immediately by visiting one of our trusted brokers below. We’ve assessed all the best brokers and compared them so that picking the right choice for you is quick and easy.
Keep reading to find out more or check out some of our other educational content.
How to buy Nike shares, a step-by-step guide
Buying shares in Nike is a simple process, even for the most inexperienced investor. The following list explains the steps you need to take to complete your investment.
- Choose a broker. In order to buy Nike stock, you will need to use an online brokerage platform. There are many different options to choose from, each with their own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Nike shares.
- Place an order for NKE stock. Now navigate to the broker’s buying stocks page (a link to this can be found in the menu on the website). Here you’ll be able to search for Nike’s ticker symbol (NKE) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to buy and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Nike shares will be listed in your account. Congratulations, you’ve just bought shares in Nike! For more information on how to invest in stocks, explore the Invezz website.
What is Nike? And should I invest?
Nike (NYSE: NKE) is the largest manufacturer of athletic shoes and apparel in the world. It owns the most valuable sports brand and has endorsed numerous high profile sports teams and athletes.
Nike is transitioning away from its traditional role as a wholesaler, towards a model where it offers direct sales to consumers through its apps and retail stores. It’s streamlining its product offerings in an attempt to be more agile and responsive to consumer demand.
Below you’ll find information on how Nike has performed historically and its future prospects. It is a popular stock that has rewarded investors well of late. The pandemic has opened up new avenues for growth and sped up the development of its digital transition. Keep reading to see if those factors are enough to invest in Nike.
How has NKE performed as an investment in recent years?
Nike was already one of the top 50 US companies before its recent growth surge. It doubled in value between 2018 and the start of 2021, despite the coronavirus outbreak shuttering many of its stores.
In 2015, the company announced its intention to double its direct to consumer sales to $16bn by 2020. Although it missed that target, that signalled a major shift in strategy and direct sales did improve significantly, up to $13bn.
In a similar visionary move, its investment in e-commerce prior to 2020 paid off as the COVID-19 pandemic forced sales to move online. Nike also saw a huge increase in the number of sign ups to its fitness apps, which proved fertile ground to boost those same direct to consumer sales numbers. A combination of all those positives saw Nike hitting record highs around $140 after the pandemic, even with a significant fall in in-store sales in the aftermath.
The main blots on its copybook have been in the realm of PR, where it has been embroiled in disputes between the US and Chinese government over the NBA, and been forced to close down its Oregon Project, run by disgraced athletics trainer Alberto Salazar.
Is it a good time to buy NKE shares now?
Nike is positioning itself to try to cut out the middleman and sell direct to customers rather than as a wholesaler. The pandemic accelerated this move, caused a steep rise in users of its mobile apps as well as a hike in digital sales. Nike executives want to make digital sales 50% of its revenue and double its direct to consumer sales. Tracking both would be a way of judging whether its transition is succeeding.
Nike also has a strong global market that should protect it from usual market tribulations. It is especially big in China and that market offers plenty of opportunity, both for direct sales and because it has seen significant digital sales growth already. A note of caution is that Geopolitics between the US and China has caused Nike a few problems in the past, something to note as its reliance on the Chinese market grows.
Nike is a popular stock alongside being a world-famous brand. Its popularity has already shot up in recent years with its digital focused strategy and performance in global growth markets. You can find out more about Nike’s recent stock moves, get the latest news and read our market analysis below.
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Buying, selling and trading Nike shares for beginners
What to do before buying shares
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before investing in Nike shares.
- Research the company. You should always examine the fundamentals of a company before buying its stock. What is Nike? How did the company get its start? How did it grow? Is Nike’s revenue and profit growth picking up? Is the company innovating? The more you know about Nike, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before getting involved in the exciting world of the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our honest and detailed broker reviews can help you find the right platform for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bearish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Our news area can help you keep on top of movements in the financial markets.
What is the difference between buying, selling, and trading shares?
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Nike shares. Here’s a quick run-through of what’s involved in each.
Buying Nike shares
This process involves finding a broker and placing an order to buy Nike stock, as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
Selling Nike shares
When you sell any Nike shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold onto your shares for a while, hoping to benefit from the company growing steadily throughout. Or, if you see that Nike’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading Nike shares
Trading is the same process as buying and selling shares, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade Nike shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Ways to buy Nike shares: share dealing and CFD trading
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors who are thinking long-term tending to go for share dealing, and those looking for short term gains by pursuing an aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealing refers to the practice of buying and holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividends
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into NKE shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our basic stock trading course and read our simple guide to CFD trading to get you up to speed.
If neither of these options appeal to you, then you can find a variety of other ways to invest in NKE stock on this page. If, however, you’re ready to buy Nike shares now, simply select one of the brokers in the table above and get started.
How to choose a broker
With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to buy the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and commodities.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to place trades and buy shares. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to buy Nike shares using a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
Latest Nike news
Nike’s sales come in lower than expected in the fiscal third quarter
Nike’s revenue returns to the growth zone in the fiscal second quarter
Is Nike a buy or sell in December?
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- 1. How to buy Nike shares
- 2. Compare the best platforms to invest in Nike shares
- 3. How to buy Nike shares, a step-by-step guide
- 4. What is Nike? And should I invest?
- 5. Buying, selling and trading Nike shares for beginners
- 6. Ways to buy Nike shares: share dealing and CFD trading
- 7. How to choose a broker