Nike stock falls after weak China sales, margin pressure and cautious outlook despite earnings beat. Investors worry about growth and tariffs.

Nike has the leading brand in the industry, providing an advantage it can lean on.

Nike shares fell sharply by 10% after the company reported decreased gross margins and raised concerns over inflationary pressures and tariffs, following their latest earnings release.

Nike posted modest revenue growth and an earnings beat, but operational headwinds—ranging from elevated marketing spend to tariff-driven margin

The brand is under real earnings and China pressure. But flat sales with margin beats, a nearly 2.8% dividend, and a 36% upside to Wall Street’s average target still argue for a choppy recovery rather than a broken story.

Despite double-beat Q2 results and strong North American sales, Nike faces ongoing declines in key international segments. Read why NKE stock is a Hold.

Dynavax stock spiked 38% to $15.37 after Sanofi announced an agreement to acquire the vaccine maker for $15.50 a share. The all-cash deal values Dynavax, which markets a hepatitis B vaccine in the U.S., at $2.2 billion. U.S.-listed depositary receipts of Sanofi slipped 0.1% in the premarket session.

Nike dominates the global apparel market, but this apparel retailer appears to be a better value by comparison.