We recently released a list So far, there are 11 worst performing blue chip stocks. In this article, we will explore Nike, Inc. (NYSE:NKE) Positions of other worst-performing blue chip stocks so far in 2025.
Blue chip stocks are under great pressure amid growing global trade tensions and tariff announcements. These stocks have fallen more than 15%, and so far, the market value has dropped by more than 20%, and some have fallen into bearish territory.
The sell-off was achieved in 18 years of trading volume. Investors are increasingly withdrawing from positions. Concerns about a global trade war and recession continue to stumble on market outlook as the United States imposes widespread tariffs and China’s retaliation.
“The president is losing confidence in global business leaders…this is not what we voted for,” wrote Bill Ackman, head of billionaires at Xhing Square. "The president had the opportunity to call for a pause on Monday and had time to enforce an unfair tariff system. Plus, we are moving forward for the self-induced, economical core and the economical core of Hounker and the Hounker."
Although blue chip stocks come from well-known, established companies with strong performance history, they are most vulnerable to changes in trade policies and tariffs. That's because their business operations cross various boundaries. This could explain why whenever the U.S. imposes tariffs, stocks are under pressure before retaliation from other countries.
Similarly, the Fed's outlook insists on high interest rates in an attempt to get rid of inflationary pressures in the trade war, another major headwind caused losses to large companies. Last year, stocks exploded, with central banks expecting interest rates to lower inflation to an acceptable level.
Similarly, in an AI-powered run, Blue Chip stocks exploded as expectations of billion-dollar opportunities surrounding revolutionary technology are growing. Fast forward, expectations of lowering interest rates have disappeared, and investors have begun to question AI opportunities. The development of low-cost AI models is a factor that significantly affects sentiment in the semiconductor sector, triggering a recalibration of the long-term prospects.
According to analysts at Citi Research, President Donald Trump's tariff push could put the U.S. economy in recession. In return, chip stocks may still be the most vulnerable to over 20%.
"We believe that the biggest risk for the semi-industry is the recession caused by tariffs," Chris Danely, managing director of the bank, wrote in a recent note. "If the tariffs last for a month, we believe that considering uncertainty, a substantial reduction in order rates/inventory, the supply chain is likely to 'freeze', and lead to lower overall guidance - similar to Covid."
On the other hand, semiconductor stocks are not the only stocks under pressure in an escalating trade war. Energy, industrial and healthcare stocks are also the first to bear the brunt, leading to some of the worst performing blue chip stocks so far.
To prepare for this article, we first list all holdings of various blue chip ETFs, such as the EA Bridgeway Blue Chip ETF and Vanguard Mega Cap ETF. We then started on April 25 for each company’s share price return at the beginning of the year and chose the worst performance. As of April 25, we also mentioned hedge fund sentiment around each stock.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
A team of trainers and athletes showcasing a variety of sports and casual footwear.
Annual share price return ended April 25: -21.79%
Number of hedge fund holders: 73
Nike, Inc. (NYSE:NKE) is a footwear and accessories company that designs, develops and markets sports footwear, clothing, equipment, accessories and services. It is the world's largest supplier of sneakers and apparel, with a mission to drive innovation and inspire athletes. Although the stock has fallen by about 22% in the year, the stock has dropped by about 50% since the beginning of 2024, confirming it as one of the worst performing blue chip stocks.
The underperformance comes from the company's disappointing financial results, which has attracted serious concerns about potential growth. In the third quarter of fiscal 2025, revenue fell 9%, and earnings per share fell 30% to $0.54 per share. Revenue and EPS fell 9% and 26% in the past three quarters, respectively. Disappointing financial results come from Nike (NYSE:NKE), which faces a challenging promotional environment, with currency headwinds and tariffs exacerbating the promotional environment. China's sales fell 17% in the third quarter, highlighting how the company is vulnerable to tariff threats. The company expects revenue to drop in 2025 in the third quarter. Why the stock has taken a huge hit in the market.
Nike, Inc. (NYSE:NKE) is reportedly working to automate its production process in the United States, and still maintaining pressure. Berenberg began covering the stock with a holding rating and a $58 target, while reiterating its uncertain future in terms of recovery from growth and profitability.
Overall Ranked second Our list of worst performing blue chip stocks so far in 2025. Although we acknowledge the potential of NKE is an investment, our belief is that AI stocks have greater hope, can offer higher returns and be carried out in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for more promising AI stocks than NKE, but trade less than 5 times their earnings, check out our report The cheapest AI stock.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Internal monkey.