Apple CEO Tim Cook has made his most significant personal investment in Nike in over a decade, purchasing 50,000 shares of the sportswear giant for approximately $2.95 million. The regulatory filing, disclosed on December 23, sent Nike shares jumping 4.6% on Christmas Eve and has Wall Street buzzing about what Cook knows that others might not.

The Purchase Details

According to SEC filings:

  • Shares purchased: 50,000 Class B shares
  • Purchase date: December 22, 2025
  • Average price: $58.97 per share
  • Total investment: Approximately $2.95 million
  • New total holdings: 105,480 shares (valued at roughly $6.3 million)

The purchase effectively doubled Cook's direct Nike stake and represents the largest open-market stock acquisition by a Nike director or executive in at least a decade, according to Baird Equity Research analyst Jonathan Komp.

Why It Matters

Insider buying is closely watched by investors because corporate directors and executives have the best view of a company's prospects. When they invest their own money, it often signals confidence that isn't fully reflected in the stock price.

Cook's purchase is particularly notable because:

  • He has served on Nike's board since 2005—giving him two decades of insight into the company
  • He reportedly advised Nike to make leadership changes, including bringing back veteran Elliott Hill as CEO
  • The timing comes just days after Nike's disappointing Q2 earnings sent shares tumbling 10%

The Turnaround Story

Nike has struggled in 2024-2025, facing challenges including:

  • Weakening demand in China, its second-largest market
  • Increased competition from newer brands like On Running and Hoka
  • Strategic missteps under former CEO John Donahoe
  • Strained relationships with wholesale partners

Elliott Hill, who returned as CEO in October after retiring in 2020, is implementing a turnaround plan focused on product innovation, wholesale partnerships, and cultural reconnection with athletes and consumers.

Cook's Endorsement

Analysts view Cook's purchase as a public endorsement of Hill's changes. Reuters reported that Cook has been advising Nike behind the scenes, pushing for the management shake-up that ultimately brought Hill back.

By putting his own money on the line, Cook is signaling confidence that the turnaround will succeed—even as the stock trades near multi-year lows.

Other Insider Activity

Cook wasn't alone. A separate filing showed that Bob Swan, the former Intel CEO who also sits on Nike's board, acquired 8,791 shares, increasing his stake to 43,293 shares.

When multiple insiders buy simultaneously, it often amplifies the bullish signal.

Wall Street's View

Analyst opinions on Nike remain mixed:

  • Bulls: Point to Nike's brand strength, global distribution, and potential for operational improvement under new leadership
  • Bears: Worry about structural challenges in China and the time required for a meaningful turnaround

The stock trades at approximately 20x forward earnings, a significant discount to historical averages—reflecting the uncertainty.

What Investors Should Consider

Before following Cook's lead, investors should consider:

  • Turnarounds take time: Even successful corporate overhauls typically require 18-24 months to show results
  • China risks persist: The latest earnings showed continued weakness in this key market
  • Insider knowledge: Cook has information that public investors don't—but that doesn't guarantee success

The Bottom Line

Tim Cook's $3 million bet on Nike is the strongest endorsement yet that the sportswear giant's turnaround is on track. As one of the world's most respected CEOs and a 20-year Nike board member, Cook's open-market purchase carries significant weight. For investors, it provides a reason to take a fresh look at a beaten-down brand—but success isn't guaranteed. Turnarounds are hard, and Nike's challenges are real. Cook is betting that Elliott Hill can restore the swoosh to its former glory. Wall Street is now watching to see if he's right.