Lessons from Nike's 2025 Stock Plunge: Three Stocks That Outran the Pack.

Imagine parking $10,000 in a household name like Nike five years ago, only to watch it shrink to around $4,400 today, even after factoring in those steady dividends. That's the stark reality for NKE shareholders as of December, 2025, with the stock trading in the high $50s after a brutal slide from its pandemic-era peak above $170.

The swoosh has lost its stride amid fierce competition from upstarts like Hoka and On Running, persistent weakness in China where sales have plunged for quarters on end, excess inventory forcing deep discounts, and fresh margin squeezes from tariffs. What once looked like an unstoppable growth story has turned into a cautionary tale of how even iconic brands can stumble in a fast-changing market.

But flip the script, and the past five years have minted fortunes elsewhere, particularly in high-growth small caps and resource plays that caught powerful tailwinds. Put that same $10,000 into the right alternatives back in late 2020, and it could have ballooned dramatically, underscoring a timeless investing truth: betting on momentum and emerging trends often trumps clinging to yesterday's winners.

Take Aritzia (TSX:ATZ), the Vancouver-based fashion retailer that's been quietly crushing it in the premium womenswear space. Shares traded around C$28-30 five years ago; today they're hovering near C$115-117 after a relentless U.S. expansion and booming demand for its everyday luxury aesthetic. That's roughly a 300-400% gain, turning $10,000 into $35,000-$40,000 with pure price appreciation, no dividends needed. While Nike grappled with fading cool factor, Aritzia nailed the post-pandemic shift toward polished, versatile style.

Then there's K92 Mining (TSX:KNT), a standout in the junior gold space that rode the surging bullion price to extraordinary heights. Starting around C$3-4 per share in late 2020, it's climbed to the C$20 range amid strong production growth at its Kainantu mine in Papua New Guinea and a gold rally that's seen prices shatter records. The result? Gains exceeding 500%, potentially growing that $10,000 stake to $60,000 or more as operational execution met a favorable commodity cycle.

For a more speculative flavor, consider Millennial Potash (TSXV:MLP), an emerging player in the fertilizer sector. Though its major run-up came more recently with drill successes and potash's rising strategic importance, shares exploding from penny levels to over C$3, the broader commodity boom since 2020 has rewarded patient resource investors handsomely in similar names.

These contrasts highlight a sharper investing philosophy: blue-chip safety can sometimes mean stagnation when disruption hits, while calculated bets on growth sectors, like premium retail or commodities tied to global demand, can deliver life-changing returns. Of course, the flipside is volatility; many small caps falter, and timing matters immensely. Diversification remains key, as does remembering that past winners aren't guarantees.

In hindsight, swapping Nike for these dynamic alternatives would have meant the difference between erosion and explosion. As markets evolve, the lesson is clear, stay agile, scout the next wave early, and don't let brand loyalty blind you to better opportunities.

Sources:

1. Nike historical prices and performance: MacroTrends, Yahoo Finance, FinanceCharts.com (5-year total return approx. -48% with dividends).

2. Aritzia (ATZ.TO) prices and performance: TradingView, Yahoo Finance Canada.

3. K92 Mining (KNT.TO) prices and performance: Yahoo Finance, company reports.

4. Millennial Potash (MLP.V) recent performance: Yahoo Finance, company announcements.

5. General market context: Various financial databases as of December 22, 2025.

Note: All figures approximate based on closing prices around December 22 periods; actual returns vary by exact timing. Investing involves risk; this is not financial advice.