{"id":42658,"date":"2025-08-18T11:35:05","date_gmt":"2025-08-18T11:35:05","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/18\/is-the-crashing-adidas-share-price-a-buying-opportunity-2\/"},"modified":"2025-08-18T11:35:05","modified_gmt":"2025-08-18T11:35:05","slug":"is-the-crashing-adidas-share-price-a-buying-opportunity-2","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/18\/is-the-crashing-adidas-share-price-a-buying-opportunity-2\/","title":{"rendered":"Is the crashing Adidas share price a buying opportunity?"},"content":{"rendered":"<div><\/div>\n<p>Adidas stock price has collapsed this year as concerns about its growth continued. It plunged to a low of \u20ac160, down by over 38% from its highest point this year. It has underperformed Nike, the embattled company whose stock has jumped by 48% from the YTD low.<\/p>\n<h2 class=\"wp-block-heading\">Why Adidas stock price crashed<\/h2>\n<p>Adidas share price has collapsed this year as investors remains concerned about its <a href=\"https:\/\/invezz.com\/news\/2025\/07\/30\/adidas-shares-slump-after-sales-miss-tariff-warning-and-guidance-confirmation\/\">business amid US tariffs <\/a>and other macroeconomic factors.&nbsp;<\/p>\n<p>While the company stuck with its forward guidance, it warned that the range of possible outcomes had increased. It <a target=\"_blank\" href=\"https:\/\/res.cloudinary.com\/confirmed-web\/image\/upload\/v1753852841\/adidas-group\/investors\/financial-publications\/2025\/Q2\/adidasAG_Q2_2025_Results_EN_Final_pa2trd.pdf\">said<\/a>:<\/p>\n<blockquote class=\"wp-block-quote inv-component-break-container is-layout-flow wp-block-quote inv-component-break-container-is-layout-flow\">\n<p>\u201cThe increased uncertainty around the possible direct and indirect impacts from higher US tariffs persists. \u201c<\/p>\n<\/blockquote>\n<p>The main issue is that most of its products are made in Asian countries like Vietnam, China, and Indonesia. Most Vietnamese goods brought to the US are being charged a 20% tariff, while Indonesians face a 19% levy. Chinese goods are being charged 30%.<\/p>\n<p>Therefore, analysts believe that its business will see weaker demand and slimmer profits. In its recent results, the company warned that the headwind could be about \u20ac200 million.&nbsp;<\/p>\n<p>Its recent financial results showed that its business thrived in the second quarter of the year. Revenues jumped by 12% in Q2 to \u20ac6 billion, while its operating profit shot up by 58% to \u20ac546 million.&nbsp;<\/p>\n<p>Revenue in the first half of the year rose by 14%, while its operating profit soared by 70% to \u20ac1.2 billion.&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">The bullish case for Adidas<\/h2>\n<p>The ongoing Adidas share price crash could be a good opportunity for long-term investors for a few reasons.&nbsp;<\/p>\n<p>First, the company\u2019s results showed that its business continued its growth despite the challenges in the second quarter. Remember, Donald Trump\u2019s tariffs remained in place during the quarter.&nbsp;<\/p>\n<p>Second, the company\u2019s forward guidance was relatively strong. It expects that the operating profit for the year will be between \u20ac1.7 billion and \u20ac1.8 billion, helped by its gross margin expansion.<\/p>\n<p>Third, the company\u2019s valuation has improved during the ongoing stock crash. It now trades with a forward price-to-earnings ratio of 21.8, which is not bad for a company that has experienced double-digit revenue growth. Indeed, its PEG ratio of 0.05 shows how cheap it is.&nbsp;<\/p>\n<p>Additionally, its sales growth is balanced across various channels. Its wholesale business rose by 14%, while its own retail and e-commerce grew by 9% and 9%. Wholesale accounted for 61% of sales, while direct-to-consumer, own retail, and e-commerce accounted for 39%, 22%, and 17% of the sales.&nbsp;<\/p>\n<p>Adidas share price could also mirror the <a href=\"https:\/\/invezz.com\/news\/2025\/07\/28\/nike-stock-soars-after-jpmorgan-upgrade-whats-driving-wall-streets-sudden-optimism\/\">performance of Nike<\/a>, its biggest competitor, whose stock has rebounded in the past few months.&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">Adidas share price analysis<\/h2>\n<figure class=\"wp-block-image inv-component-break-container size-large\"><\/figure>\n<p>Adidas stock price chart | Source: TradingView<\/p>\n<p>The daily chart shows that the Adidas stock price has crashed in the past few months, moving from a high of \u20ac261 in February to \u20ac166 today. It recently moved below the important support level at \u20ac173.70, its lowest level in April.&nbsp;<\/p>\n<p>Adidas stock price has plunged below all moving averages, a sign that bears are in control. It has also formed the bearish flag pattern, which is made up of a vertical line and some consolidation.&nbsp;<\/p>\n<p>Therefore, the stock price will likely continue falling as sellers target the support at \u20ac150. This decline will likely be a good buying opportunity as the stock will bounce back as investors embrace the new normal of tariffs.<\/p>\n<p>The post <a href=\"https:\/\/invezz.com\/news\/2025\/08\/18\/is-the-crashing-adidas-share-price-a-buying-opportunity\/\">Is the crashing Adidas share price a buying opportunity?<\/a> appeared first on <a href=\"https:\/\/invezz.com\/\">Invezz<\/a><\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Adidas stock price has collapsed this year as concerns about its growth continued. It plunged to a low of \u20ac160, down by over 38% from its highest point this year. It has underperformed Nike, the embattled company whose stock has jumped by 48% from the YTD low. Why Adidas stock price crashed Adidas share price <\/p>\n","protected":false},"author":1,"featured_media":42659,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-42658","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42658","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=42658"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42658\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/42659"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=42658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=42658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=42658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}