Is Nike stock worth buying now? Here's what Tim Cook thinks

Nike shares surged nearly 4% in early trading Wednesday, December 24, after Apple CEO Tim Cook made a surprised investment in the sportswear brand.

Cook has been a board member of Nike since 2005, purchased 50,000 shares at $58.97 each, as per a regulatory filing.

With this purchase, his stakes got doubled in the company bringing his total holding to around 105,000 shares worth nearly $6 million.

Analysts note that this is the largest open-market stock purchase by a Nike director or executive in over a decade.

The vote of confidence comes at a critical time for Nike. Recently, the company reported weaker quarterly margins and continued sluggish sales in China.

Nike’s stock is down roughly 13% since its December 18 earning report and is on its way for a fourth consecutive annual decline.

With Cook’s personal investment, the company has seen optimism.

For investors, Cook’s action gives a compelling data point. As a seasoned technology leader, his investment highlights that he sees value in the company which the broader market may be overlooking.

His current purchase doesn’t guarantee success to investors but it offers a clear answer to what he thinks i.e., at its current price, he believes Nike’s long-term potential outweighs its near-term troubles.