Nike Tumbles, FedEx Beats and the Stock Falls, OpenAI Valuation Watch 12/19/25

SPEAKER_1 (0:00)

Introducing Fidelity Trader Plus, the next generation of advanced trading from Fidelity. Customize your tools and charts and access them seamlessly across desktop, web and mobile. For faster trades, anywhere you go. Try the all new Fidelity Trader Plus. Learn more about our most powerful trading platform yet at fidelity.com/traderplus. Investing involves risk, including risk of loss. Fidelity Brokerage Services, LLC, member NYSE, SIPC.

SPEAKER_2 (0:30)

Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals, like business management, strategic planning and effective communication. And you can apply these skills right away. A different future is closer than you think with Capella University. Learn more at capella.edu.

Jim Cramer (1:00)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (1:07)

Good Friday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer and David Faber, post-9 of the New York Stock Exchange. We wrap up the last full week of trading for the year with some quad-witching, some TikTok news, Nike FedEx earnings and global yields up around the world as the Bank of Japan hikes their benchmark to a 30-year high. Our own year, our own 10 years around 415 Our road map is going to begin with Nike. Shares are dropping sharply in early trade. China sales plunge and tariffs hitting profits. We'll talk about it if the turnaround plan is still intact.

David Faber (1:38)

Keeping an eye on FedEx shares, they seem to be under a bit of pressure despite the company beating on the revenue and earning lines. We're also getting a number of price hikes for the stock on the street. Why not? We'll check in on that. And then we'll be discussing the latest reports about OpenAI's new fundraising round. It's not quite. It's under way. The number now entered 30 billion. We'll have some reporting on that as well.

Carl Quintanilla (2:04)

Let's begin with Nike shares tumbling in the pre-market despite this quarterly beat. Got some weakness in China, overshadowing strength in North America. On the call last night, Elliott Hill talked about the turnaround plan and some of the headwinds they're facing.

Elliott Hill (2:18)

Our order book is improving season on season. Through the sport offense, we're on our way in product. But as I've said, near-term investments to clean up and elevate the marketplace have put real pressures on margins. Tariffs have also obviously added a significant headwind to overcome. I want to state it very clearly, margin expansion is a top priority for me and my leadership team. While it will take time, we see the path back to double-digit EBIT margins for Nike, Inc.

Carl Quintanilla (2:54)

A guide to a sales decline this quarter. Actually, another good piece in the journal today about the tariff effect on Costco, Jim.

Jim Cramer (3:01)

Yes.

Carl Quintanilla (3:01)

But your point on Nike is that just when one thing makes progress, another area causes trouble.

Jim Cramer (3:06)

Right. China was quite difficult for them because they were so trash. They trash themselves. They're in the wrong outlets. They've got bad inventory. One of the things that Elliott said that was devastated was this reality would become a lifestyle brand. I mean, that is the kiss of death. They're not a lifestyle brand. They're a sports brand. As a matter of fact, they changed a lot of the things in America. They've changed it from having a man, woman, child brand to having verticals of sports. Okay, I'm going to say something that people are not going to like.

You gotta buy a stock. Really? Yeah, you gotta buy a stock. Two reasons. One, if you think that the Supremes are going to go against the president, 70, like that, okay, in tariff. Now, I'm not talking Cal sheath. I don't want to go to Cal sheath because I'm investment. See, I want to own the stock.

David Faber (3:52)

You're talking, obviously, about the Supreme Court case in terms of tariffs, right?

Jim Cramer (3:55)

But I'd rather own the stock than own the bet on the Supremes, okay? But second, Elliott Hill is a different kind of CEO. He came in and he recognized Carl. There were so many things wrong. And he fixed North America. North America's really good.

But then he goes on and on about how poorly he's doing in China to lower expectations. They are doing poorly in China and every single thing they tried to try to discount that didn't work. They tried full price, that didn't work. But he's going to go over there and Elliott Hill is going to fix it. And we're all going to say, why didn't we buy it in 56, 57? I'm not doing the Jeff Rees back up the truck because previously he had said, just buy it. Credibility issue. But I do say that, you know what? Those who sell it down here, I think you're going to look back and say, first when the Supreme Court, when Gore Sutch says, listen, we don't like the tariffs, you're going to say, why didn't I buy it at 70? And then when China turns, you're going to say, why didn't I buy it at 80? So yes, I'm a believer in Elliott. Totally. And I think he ran a great call. It was a self-effacing call. He did not have any braggadocio. He was just saying, listen, we screwed up, we screwed up. And this is what's right. I love that. Humility goes a long way with me.