The big post-earnings drop in Nike shares is a big opportunity. "The stock is going to be worth $100," Jim Cramer said on Friday's Morning Meeting — stressing it must be bought now while under pressure. Shares of Nike sank more than 10% and traded under $59 each after Thursday evening's fiscal 2026 second quarter earnings report revealed worsening China sales. Nike felt the bite of tariffs. While sales in North America were much better than expected, the company issued disappointing guidance. Taken as a whole, it was further proof that turarounds are tough and take time. They are, by no means, linear. NKE YTD mountain Nike YTD "You got to buy for two reasons," Jim said earlier on " Squawk on the Street ." The first reason is the pending Supreme Court decision on the legality of tariffs. If the justices were rule against the tariffs imposed by President Donald Trump , Jim predicts that Nike stock would immediately bounce back to $70 per share. A decision by the high court is expected early next year. Management did not talk about the Supreme Court case. The second is Jim's faith that Nike CEO Elliott Hill, only 14 months on the job, is capable of reversing all of the damage done under former CEO John Donahoe. "Hill is a different kind of CEO," Jim said, praising Hill's humility on the earnings conference call. Hill, a Nike veteran, came out of retirement to replace the fired Donahoe. He put in place a plan to resurrect the brand, focusing on wholesale relationships and a return to innovation and store-concepts around sport. As for China, Jim did not sugarcoat it, calling Nike's performance there "devastating." None of Nike's efforts in the region, including promotions and premium pricing, landed well. However, Jim is confident that Hill can steer Nike's business in the world's second-largest economy back to health. "When China turns, you're going to say, why didn't I buy it at $80? So yes, I'm a believer in Elliott." On the earnings call, Hill said, "The next step is to further adapt our approach to fit China's unique mono-brand footprint and digital-first marketplace. The reset requires a fresh way of thinking ... and it will take time." In a note to clients on Friday, Jeffries analysts also said that it's time to aggressively buy Nike's stock. After Thursday evening's print, we maintained our buy-equivalent 1 rating . We did, however, lower our price target to $75 per share from $80 in recognition of the China problems. (Jim Cramer's Charitable Trust is long NKE. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
