Everyone Ignored It In The 80s - Now Its Worth A Lot More Money

There is nothing better than catching a promising company stock when it is still young and watching it rise over the years. But finding winners early and sticking with them is not easy, especially when the ride gets a little bumpy on the way. This is what happened with Nike (NKE) in the '80s, after the company had filed for an IPO. The brand was initially shunned for being too risky, whereas poor company performance a few years later made a lot of early investors leave as well. Needless to say, Nike bounced back and became one of the most profitable stocks in the following decades. From the time of its IPO to the end of 2025, Nike has given a return of over 35,000%.

Nike had great momentum leading up to its IPO in 1980. The company was riding a wave of phenomenal success driven by the new running culture of the '70s, and revenue had grown by an average of 85% per year, while profits had roughly doubled annually from 1972 to 1980. However, this amazing run had also made the stock a little less favorable in the eyes of the investors who had apprehensions that the sneaker company had already seen its best times.

Nike got overtaken by Reebok as the number one sports brand during the mid-'80s. Its previous success had fueled off its popularity as a brand that made casual shoes for casual wear. But when trends changed towards the use of traditional leather footwear, and running shoes gave way to shoes designed for sports and aerobics, Nike found itself dealing with a huge problem. Meanwhile, Reebok, along with brands like Adidas, had capitalized on the demand for aerobics and sports shoes during this time. 

Nike refused to acknowledge the trend and tried a new line of casual footwear for women, which didn't work. In 1983, Nike had to sell 22 million pairs of running shoes at discounts and absorb losses, per The New York Times. By 1984, Nike faced its first dip in revenue in a decade. Company CEO at the time, Phil Knight, acknowledged these issues in an annual letter (via The Motley Fool), saying that "Several factors affected us. Most significantly, our domestic footwear market is changing, edging away from athletic looks to a renewed demand for fashion and traditional styles. These changes resulted in inventory valuation losses over three times greater than 1983." 

Refusing to panic when the markets retract is an extremely useful tip for investing in stocks as a beginner. Nonetheless, considering that between November 1982 and mid-December 1984, Nike shares had plummeted by over 70%, you would have been forgiven for dumping the stock at the time. After all, even Warren Buffett, the Oracle of Ohama, has made errors evaluating businesses in the shoe industry — his investment in Dexter Shoes is one of his rare mistakes.

While the '80s tested the patience of even the most resolute Nike investors, those who did not sell were certainly rewarded — the company ultimately bounced back by 1985. Nike signed 21-year-old Michael Jordan in 1984, and the profits began to skyrocket. Within the first year of the deal, Nike had sold $126 million worth of Air Jordans, per CNBC. After its successful partnership with Michael Jordan, Nike went on to partner with other celebrities, including Serena Williams, Roger Federer, and Tiger Woods in the years to come. Over the years, Nike has become renowned for its strategic collaborations with celebrities that have further driven its brand value. For instance, worn by Kanye West at the 50th Grammy Awards in 2008, Nike Air Yeezy Grammy were still worth a lot of money in 2025.

Among the best ways to invest if you only had $100 to spare, opportunities like the Nike IPO certainly stand out. If you would have invested $100 when the company went public in 1980 and stuck with it during its mid-'80s headwinds, you would be sitting at 555 shares worth almost $34,000 by the end of 2025. This is after you account for the seven two-for-one stock splits the company has undergone from the time of its IPO. Furthermore, if you would have reinvested the dividends, the returns spike up to almost 900 shares worth over $55,000.