Tim Cook’s Bold $3M Nike Bet Shocks Investors

Cook bought 50,000 Class B Nike shares on December 22 at an average price of $58.97 per share, lifting his total holdings to about 105,000 shares valued at nearly $6 million, according to a regulatory filing released Tuesday. The transaction, Cook’s largest open‑market Nike purchase in years, came after the stock slumped following weaker quarterly margins and sluggish sales in China.​

Nike shares closed up 4.6% on Wednesday after the disclosure, partially reversing a slide of nearly 13% since the company reported results on December 18, which highlighted pressure on profitability and demand in key markets. The stock remains on track for a fourth straight year of declines and is among the worst performers in the blue‑chip Dow Jones Industrial Average, closing at $60.​

Analysts said the move underscored confidence in Hill’s “Win Now” strategy, which focuses marketing and product innovation on running and core sports while phasing out lagging lifestyle lines. “(We see) Cook's move as a positive signal for the progress under CEO Elliott Hill and Nike's ‘Win Now’ actions,” said Jonathan Komp, analyst at Baird Equity Research.​

The purchase followed Nike’s efforts to repair distribution ties with wholesalers such as Dick’s Sporting Goods to regain shelf space and visibility amid intensifying competition from newer athletic and lifestyle brands. Those steps, combined with promotional activity, have weighed on margins for more than a year as the company works through excess inventory and tries to regain share, particularly in discount‑sensitive China.​

Cook has served on Nike’s board since 2005 and became lead independent director in 2016 when co‑founder Phil Knight stepped down as chairman, placing him at the center of governance decisions at the apparel maker. He also chairs Nike’s compensation committee and has advised on key strategic moves, including Hill’s appointment as CEO last year.​

Institutional investors are watching insider activity closely after some exited the stock over what they described as leadership missteps and weak innovation in core performance categories. “For Tim Cook to be an inside buyer is a modest positive,” said David Sowerby, portfolio manager at Ancora Advisors, which sold its Nike position more than a year ago, citing an “ineffective CEO,” excess inventory and market‑share losses.​

The buying was not limited to Apple’s chief executive: Nike board director and former Intel CEO Robert Swan acquired about 8,700 shares for roughly $500,000 this week, adding to signals of internal support for the turnaround. The Reuters report on the transaction noted that Cook’s latest purchase appears to be the largest open‑market stock buy by a Nike director or executive in more than a decade.​

The move comes as Nike faces sustained investor pressure over its multi‑year share underperformance and execution risks tied to Hill’s reset of product, marketing and wholesale strategy. For Apple’s long‑time chief, the increased stake aligns his personal exposure more closely with the outcome of that turnaround at one of the world’s largest athletic brands.