Tech VC on Nike’s worst-ever stock fall: ‘Mastery & excellence became too traditional’

Nike recently witnessed the worst fall in its stock history, raising questions about what went wrong for the American giant once synonymous with athletic excellence. The decline prompted sharp commentary from tech venture capitalist Chamath Palihapitiya, who reflected on how the company lost sight of its original version. Palihapitiya argued that Nike’s early success was built on a clear North Star: “Somewhere along the way, mastery and excellence became too traditional looking. So they went to things that were just nothing to be associated with mastery or excellence. I don't aspire to be a fat person. Never have, never will. I aspire to be Michael Jordan. Always have, always will." He recalled growing up seeing icons like Michael Jordan, Tiger Woods, Serena Williams, and Pete Sampras, all representing the pinnacle of athletic achievement. “I don’t aspire to be a fat person. I aspire to be Michael Jordan,” he said, underscoring Nike’s original appeal as a brand tied to greatness.Nike’s historic slideNike shares have fallen roughly 78% from their November 2021 peak, a slide that market strategist Charlie Bilello has called the largest drawdown in the company's history as a publicly traded business — a notable distinction given that Nike has previously weathered recessions, boycotts, and supply chain disruptions without this level of sustained decline. The stock recently touched its lowest level in 12 years, erasing more than $200 billion in market value along the way.The pressure has shown up inside the company as well. According to Bloomberg reporting, CEO Elliott Hill told staff in an internal meeting earlier this year that he was worn out from constantly discussing how to fix the business, while stressing that employees couldn't simply assume everything was fine. Nike has been navigating a difficult stretch marked by shifting consumer preferences, intensifying competition from newer brands, supply chain adjustments, and a broader pivot toward direct-to-consumer sales — with sales in China falling for eight consecutive quarters and market share slipping to rivals like Hoka and On.Chamath Palihapitiya on Nike’s north starSpeaking about the decline, Palihapitiya argued that Nike's core problem traces back to losing sight of a clear guiding identity. He said that after nearly three decades in business, he's come to believe that having a clear North Star and sticking to it is essential — and that Nike's North Star, as he understood it growing up, was mastery and excellence expressed through athletics. He pointed to watching athletes like Michael Jordan, Tiger Woods, Serena Williams, and Pete Sampras as embodiments of that idea.At some point, Palihapitiya argued, that pursuit of mastery and excellence started to feel too conventional to the company, and Nike shifted toward messaging that had little connection to those qualities at all. He was blunt about his own take on that shift, saying plainly that his aspiration has always been to be like Michael Jordan, not to feel validated regardless of effort or achievement.He argued Nike should refocus on the idea that its role was never to make people feel good about themselves as they are, but to inspire people to improve by holding up genuinely elite athletes as the standard. Palihapitiya pointed to the sacrifice required of top athletes who dedicate their entire lives to mastering their craft, arguing Nike should embrace and take pride in that association rather than shy away from it — a positioning he believes has broad, universal appeal. He closed by reiterating that Nike's failure to stay anchored to that original identity of excellence and mastery is, in his view, at the heart of its current struggles.