NKE

Nike stock has been under heavy pressure for several years, yet the current valuation checks give a split message, with the Discounted Cash Flow (DCF) intrinsic value pointing to shares that are roughly in line with fair value while market multiples still suggest potential undervaluation. After such a long slide, the question for investors is whether the recent price around US$38.59 already reflects the operational challenges described in recent Nike news or if the market is leaning too far to one side. Over the past 5 years, Nike shares have fallen about 74.6%, which shows how sharply sentiment has reset on the stock. Execution on the wholesale focused turnaround and efforts to improve core product momentum can support Nike's cash generation. At the same time, ongoing weakness in digital channels, China demand and competitive pressure in performance footwear remain key risks to those cash flows. With a low value score of 2 out of 6, Nike does not screen as a clear bargain on the broader checks even though the multiples look undemanding and the intrinsic value estimate sits in the fairly valued range with a discount of about 7.3%. The stock's next move may depend on whether Nike can translate its turnaround plan into steadier earnings and cash flows that justify what both the intrinsic value estimate and the market multiples are currently implying. Capitalize on the reset in Nike by comparing it with hand picked companies that screen well on valuation and balance sheet quality using our 51 high quality undervalued stocks. The Discounted Cash Flow (DCF) model here projects the cash Nike can return to shareholders and then discounts it back to today. On this view, Nike generated about $2.25b of free cash flow over the last twelve months, and the model assumes these cash flows grow rather than shrink over time. That stream of cash produces an estimated intrinsic value of about $41.64 per share. Set against the recent share price around $38.59, Nike screens as roughly 7.3% undervalued on this DCF output. The recent plunge to a 12 year low, driven by worries over the footwear turnaround and softer demand, helps explain why the market is pricing the stock slightly below what the cash flow projections support. On these discounted cash flow assumptions, Nike stock appears to be roughly fairly valued, with only a modest margin of undervaluation. NIKE is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for NIKE. P/E is often a useful check for a consumer brand like Nike because earnings are a key anchor for what investors are willing to pay. Nike currently trades on a P/E of about 18.4x, which is above the luxury industry average of roughly 17.0x and also higher than the peer group average near 14.6x. On simple comparisons, the stock does not screen as obviously cheap against its sector. The more tailored “fair” P/E ratio for Nike is estimated at about 25.4x, which reflects what investors might expect to pay given its size, margins and risk profile. Set against the current 18.4x, the stock changes hands at a sizeable discount to that fair multiple even though sentiment around the turnaround remains cautious. This gap indicates that, on earnings alone, the market is pricing Nike more conservatively than the model implies. On the P/E multiple, Nike stock appears undervalued relative to the earnings-based fair value benchmark. See what the numbers say about this price — find out in our valuation breakdown. Narratives for NIKE on Simply Wall St pick up where this valuation puzzle leaves off by spelling out what would need to happen to NIKE's growth, margins and earnings for the stock to be worth meaningfully more or less than its current price. Rather than rely on a single multiple or model output, each narrative lays out the key assumptions behind its view of fair value so you can compare them with NIKE's actual results as they are reported. The community view on Nike is split, with one camp focused on a sport led recovery and another worried that the turnaround still leaves the stock exposed. Bull case: 25% undervalued Read the full Bull Case to see why NIKE could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why NIKE could be overvalued Do you think there's more to the story for NIKE? Head over to our Community to see what others are saying! Nike appears roughly fairly valued on the Discounted Cash Flow (DCF) view, with only a modest 7.3% discount to the intrinsic value estimate, while earnings multiples still lean towards undervalued against the tailored fair P/E. The low value score indicates that the broader checks are not as strong as the multiples alone might suggest, so any perceived discount comes with clear execution risk. The key question from here is whether Nike can deliver a steadier turnaround in product and channel performance that supports cash flows and justifies a re rating, or whether the current pricing ultimately proves to be a value trap. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NKE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

lululemon athletica Inc. LULU is likely to witness top- and bottom-line declines when it reports second-quarter fiscal 2026 results on Sept. 3, after market close. The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $2.5 billion, indicating 2.3% growth from the year-ago quarter's reported figure.The consensus estimate for the company's fiscal second-quarter earnings is pegged at $1.79 per share, suggesting a 42.3% decline from the year-ago quarter’s actual. Earnings estimates have been unchanged in the past 30 days.The Vancouver-based company has been reporting steady earnings outcomes, as evident from its bottom-line surprise trends in the past several quarters. lululemon has a trailing four-quarter earnings surprise of 8.1%, on average. Given its positive record, the question is, can LULU maintain the momentum? lululemon athletica inc. price-eps-surprise | lululemon athletica inc. Quote Our proven model does not conclusively predict an earnings beat for LULU this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.lululemon has an Earnings ESP of 0.00% and a Zacks Rank #3. lululemon continues to benefit from the progress in its Power of Three X2 growth strategy. The plan focuses on three key growth drivers — product innovation, guest experience and market expansion. LULU is expected to deliver solid revenue growth in the fiscal second quarter through product innovation, enhanced guest experience and aggressive international expansion under the plan.International markets, led by Mainland China, have been posting outsized growth, while the men’s category has been gaining share. Digital investments have been strengthening the omnichannel ecosystem and disciplined store expansion has been supporting brand visibility. On the last reported quarter’s earnings call, the company noted that trends in Mainland China have been strong in the second quarter of fiscal 2026.For second-quarter fiscal 2026, management guided China Mainland to see mid- to high-teens growth and Rest of World to record high-single to low-double-digit growth. This keeps international expansion as the primary offset to a weaker Americas demand backdrop. Our model anticipates revenues in China Mainland to increase 19.5% and Rest of World to grow 14.6% in second-quarter fiscal 2026.However, LULU faces near-term pressure from soft North America demand and significant margin contraction. Higher markdowns, tariff-related costs and elevated SG&A expenses weighed on profitability, while cautious guidance signals slower growth and continued operating margin pressure.North America, lululemon’s largest and most mature market, has been witnessing softness due to uneven traffic trends and increasingly cautious consumer spending, particularly in discretionary categories. The impact has been most visible in the women’s category, a core driver of the brand’s North American business. Slower momentum in North America limits consolidated growth and raises concerns about market saturation. Increased promotional activity across the broader apparel space has also intensified competition, making it harder to drive full-price sales. Until demand stabilizes and traffic improves, North America is likely to remain a drag on near-term revenue growth. On the last reported quarter’s earnings call, management cited a recent moderation in sales trends tied to spikes of negative brand commentary and product launches that have not met expectations, and noted it is moving with urgency to adjust product and increase marketing and community activations. Management’s near-term outlook points to a tougher demand and margin setup in the fiscal second quarter. Management reduced its outlook after sales trends moderated exiting first-quarter fiscal 2026. For second-quarter fiscal 2026, it expects revenues of $2.45-$2.475 billion, suggesting a 2-3% fall, and EPS of $1.76-$1.81, whereas it registered EPS of $3.10 in the year-ago quarter.lululemon’s margins are expected to remain under pressure in the to-be-reported quarter due to higher product costs, increased markdowns, unfavorable channel mix and tariff pressures. For second-quarter fiscal 2026, management expects the gross margin to move down 410 bps, led by higher tariff costs and ongoing investments in store openings, optimizations and the distribution network. Tariffs are expected to be a 150-bps headwind, with offsets of 100 bps. Meanwhile, markdowns are likely to rise 50 bps due to additional seasonal clearance. For second-quarter fiscal 2026, management expects SG&A deleverage of 500 bps, driven by lower sales versus prior expectations, proxy costs, increased marketing and the reintroduction of expenses reduced last year, including store labor hours. LULU expects the second-quarter fiscal 2026 operating margin to contract 910 bps year over year to 11.6%. lululemon’s shares have exhibited a downtrend in the past three months, losing 11.4% against the industry’s growth of 2.2%. The company has also underperformed the Zacks Consumer Discretionary sector and the S&P 500’s growth of 2% and 0.5%, respectively. Image Source: Zacks Investment Research From the valuation standpoint, the company trades at a forward 12-month P/E multiple of 10.33X, below the industry average of 15.05X. Image Source: Zacks Investment Research Here are some companies, which, according to our model, have the right combination of elements to post an earnings beat this season:Victoria's Secret VSXY has an Earnings ESP of +5.20% and currently sports a Zacks Rank of 1. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for VSXY’s quarterly revenues is pegged at $1.6 billion, which indicates an 11.2% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus mark for VXSY’s quarterly earnings has moved up by a penny in the past 30 days to 77 cents per share. The consensus estimate indicates a significant 133% rise from the year-ago quarter’s actual. VSXY has an average trailing four-quarter earnings surprise of 81.9%.Macy's Inc. M currently has an Earnings ESP of +20.81% and a Zacks Rank of 2. The company is likely to register growth in the top line when it reports second-quarter fiscal 2026 results. The consensus mark for M’s quarterly revenues is pegged at $4.8 billion, which indicates a 0.2% rise from the figure reported in the prior-year quarter. The consensus mark for Macy's quarterly earnings has moved up 5.7% in the past 30 days to 37 cents per share. However, the consensus estimate indicates a decline of 9.8% from the year-ago quarter’s actual. M has an average trailing four-quarter earnings surprise of 211%.NIKE Inc. NKE currently has an Earnings ESP of +0.55% and a Zacks Rank of 3. NIKE is likely to register top- and bottom-line declines when it reports first-quarter fiscal 2027 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $11.5 billion, which indicates a 2.2% decline from the prior-year quarter’s actual.The consensus estimate for earnings has moved up by a penny in the past 30 days to 44 cents per share, which implies a 10.2% decline from the year-ago quarter's actual. NKE has an average trailing four-quarter earnings surprise of 56.8%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report lululemon athletica inc. (LULU) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report Victoria's Secret & Co. (VSXY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

When you buy through links on our articles, Future and its syndication partners may earn a commission. Stocks barely budged Wednesday as Wall Street took a cautious stance ahead of this week's key events, namely, Nvidia (NVDA) earnings this evening and Federal Reserve Chair Kevin Warsh's keynote speech at Jackson Hole on Friday. Market participants also sifted through a busy economic calendar, which included a hotter-than-expected inflation report. Ahead of the open, the Bureau of Economic Analysis (BEA) said the Personal Consumption Expenditures Price Index (PCE) — the Fed's preferred measure of inflation — rose 0.2% from June to July, and was up 3.7% from the year-ago period. Economists expected the monthly and yearly figures to arrive at 0.1% and 3.6%, respectively. Core PCE, which excludes volatile food and energy prices, was up 0.2% month over month and 3.3% year over year, matching economists' forecasts. "With markets continuing to be sensitive to any data that could increase the odds of rate hikes, today's mild upside inflation surprise and relative economic strength weren't necessarily what investors — or the Fed — wanted to see," says Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day. The data did little to shift the needle on expectations for a rate hike at the Fed's September meeting. According to CME Group FedWatch, futures traders are pricing in a 60% chance the central bank keeps the federal funds rate unchanged next month — roughly the same as yesterday. But Zentner says "if subsequent data point in the same direction, the Fed may feel more pressure to move off the sidelines." Short-term Treasury yields ticked higher after today's inflation data while equity benchmarks slipped. At the close, the blue-chip Dow Jones Industrial Average was down 0.2% at 53,463, the broader S&P 500 was off 0.02% at 7,675, and the tech-heavy Nasdaq Composite was 0.08% lower at 26,130. Nike (NKE) was the worst Dow Jones stock today — sinking 2.3% and hitting a 12-year intraday low of $38.41 along the way — after Truist Securities analyst Joseph Civello downgraded the athletic apparel and footwear retailer to Hold from Buy. He also lowered his price target to $42 from $47. Track all markets on TradingView The downgrade comes after Dick's Sporting Goods (DKS, +4.3%) cut its full-year guidance Wednesday on weakness in its Foot Locker chain, sending shares of the consumer discretionary stock down more than 30%. This, says Civello, "signals incremental murkiness around NKE's turnaround progress." Civello also downgraded Dick's to Hold and slashed his price target to $135 from $270, saying the athletic retail chain "appears increasingly exposed to Nike with limited visibility into the product improvements needed for the brand's turnaround." The 2025 acquisition of Foot Locker increased Nike's sales penetration at DKS to 35%-40% from 25%. Nvidia was another Dow stock that closed in negative territory today, falling 1.6%, ahead of the artificial intelligence (AI) bellwether's critical after-the-close earnings report. Track all markets on TradingView Wall Street is expecting another beat-and-raise quarter from the chipmaker, but the real uncertainty rests in the forward guidance and what it means for AI demand, as well as the stock's reaction and how that impacts the broader market. You can follow along with all the latest news and commentary on Nvidia earnings on our live blog. Brandon Zureick, chief economist and senior managing director at Johnson Investment Counsel, says the timing of Nvidia's earnings event is notable considering it comes ahead of Chair Warsh's first keynote speech at the Jackson Hole Economic Symposium this Friday. "The current bull market continues to be driven by the artificial intelligence investment theme, and Warsh's commentary could influence investor sentiment," Zureick explains. The Fed chair has been deliberately vague ahead of the event and "higher long-term interest rates represent a potential headwind for the artificial intelligence trade," says Zureick. Following today's sticky PCE data, Wall Street will be looking to Warsh for more clarity on inflation and interest rates. While Nvidia and Warsh are top of mind this week, Meta Platforms (META, +1.1%) made headlines after the company agreed to an $18 billion settlement with 48 states, the District of Columbia and several U.S. territories to end a landmark case over social media's impact on children. Track all markets on TradingView Meta will also implement changes at Facebook and Instagram, including setting a two-hour time limit on the apps for users under the age of 18 and launching "night mode" and "school mode." Under the terms of the agreement, the social media platform will only pay out 70% of the settlement unless TikTok and Alphabet's (GOOGL, -1.4%) YouTube agree to pay a financial penalty, and the two platforms, along with Snapchat parent Snap (SNAP, -8.5%), agree to implement new safety measures. Stock Picks That Billionaires Love 33 Stocks That Could Rally 33% or More 5 Dolly Parton Quotes Retirees Should Live By

Nike (NKE) closed at $39.09 on Monday, Aug. 17, down about 4% on the day and the lowest close the stock has recorded since 2014. Anyone who bought shares at any point in the intervening 12 years is now flat or underwater on price. Shares rebounded on Tuesday morning, trading around $40.38 by late morning in New York. By Friday afternoon, it hadn't changed all that much at $40.79. But as the stock continually creeps lower, it is hitting lows not seen in over a decade. The close is also a small embarrassment for the most bearish call on the street, in the sense that it beat it. Roughly two weeks earlier, JPMorgan analyst Matthew Boss had downgraded Nike to “Underweight” from “Neutral” and cut his price target to $40 from $47, arguing that the turnaround decisions taken in 2026 would hurt profits before they helped them. The stock reached his target, and then went through it, within a fortnight. The 36 analysts covering the name still average a $49.88 target and a consensus rating of “Moderate Buy,” which is not exactly a death knell but also not a strong sign of support. SanDisk’s Long-Term Financial Outlook Is Turning Heads on Wall Street Google Is Reportedly Working with AMD for Its New TPU. What This Means for AMD Stock. IREN Just Passed Its Biggest AI Test as Microsoft and Nvidia Bet Billions Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Here is the part almost nobody writes, and it is the reason a 12-year low is not automatically an opportunity. At Monday's close, Nike traded at 18.6 times trailing earnings and 22.8 times forward earnings. A forward multiple higher than a trailing multiple is the market saying, in arithmetic, that it expects profits to fall. Backing out the numbers: trailing earnings per share of $2.10 against a forward multiple of 22.8 implies consensus forward earnings near $1.71 a share, a decline of roughly 18%. The price has gone back 12 years. The expected earnings have not finished going backward. Sponsored Content: You can now build wealth like a landlord for as little as $100 — and no, you don’t have to chase down rent or take 3 A.M tenant calls. What is actually broken is mostly one region. Nike's China business has shrunk about 30% since 2021, and its annual China revenue finished May at its lowest level in eight years after eight consecutive quarters of declining sales there. This is not a new diagnosis. Barchart was asking whether it was time to give up on the stock over exactly this combination of China weakness and margin pressure well before the 12-year low arrived. The company's response is a large distribution gamble. Nike is pulling online sales rights from some of its biggest Chinese retail partners and moving that business onto its own site and app plus flagship stores on Tmall, JD.com, and Douyin, starting in January. The logic is pricing power: fewer partners discounting the brand means a healthier full-price business later. The cost is immediate, and JPMorgan put the near-term revenue hole at about $1 billion a year. Analysts elsewhere have called the plan risky and extreme, which is a fair description of switching off revenue you already have. The scale of what has been undone is easy to lose in a share price. Nike's market capitalization is now roughly $59.9 billion across about 1.48 billion shares. Reporting around Monday's move put the stock roughly 78% below its 2021 record and the destroyed market value at more than $200 billion, figures consistent with the current capitalization, though the exact number depends on which day you take as the 2021 high and on the buybacks that have shrunk the share count since. Sponsored Content: Unlocking $2.1T in Energy Potential. See Why Investors Are Watching ‘FASF.’ The fair counterweight to a price-only story is the dividend, and at these levels it has become the most interesting thing about the stock. Nike declared a quarterly dividend of $0.41 on Aug. 6, an annualized $1.64, which at Monday's close works out above 4%… a yield this company has not offered in the modern era of its share price. A holder from 2014 is flat on price and is not flat on total return, because 12 years of a rising dividend sit underneath that flat line. The price of a round trip is real; a zero return is not. It is also worth being precise about what has and has not deteriorated. Revenue for fiscal 2026 came in at $46.4 billion, essentially flat against the prior year's $46.31 billion, and net income was $3.11 billion, down about 3.5%. The numbers are clear: While the business is under pressure, it is not falling apart. What has collapsed is the multiple the market is willing to pay for it, and some of that is competitive: Barchart has written before that Lululemon (LULU) shareholders can partly blame Nike for pressure in the category, and the traffic Nike lost has gone to rivals who intend to keep it. The things that would have to change are unglamorous and measurable: China sales turning positive rather than less negative, direct-to-consumer absorbing what the wholesale partners were doing, and forward estimates stopping their slide so the forward multiple falls below the trailing one instead of sitting above it. Nike next reports on Sept. 29. On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Nike stock is in a tricky spot for valuation right now. The Discounted Cash Flow (DCF) intrinsic value estimate lines up close to the current price, while a weak long term share price record and a low overall value score suggest the stock is not a clear bargain. Over the past 5 years, Nike shareholders have seen the stock fall about 73.9%, which raises the bar for any case that the current price already reflects business challenges. Nike's push to refresh its product line and athlete roster, including new basketball and sportswear launches, may support growth expectations, but concerns around profitability and exposure to China remain a key risk for how investors value the stock. On Simply Wall St's broader checks, Nike screens as undervalued on 2 of 6 measures. This means the stock leans on the expensive side rather than reading as a clear bargain overall, even with a supportive intrinsic value estimate (2/6). For investors, the debate is whether Nike's recent share price weakness and mixed valuation signals already reflect the execution and profit risks that recent news has highlighted. Find out why NIKE's -46.1% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model values NIKE by projecting future free cash flows and discounting them back to today. On this view, NIKE generated about $2.25b of free cash flow over the last twelve months. The model assumes these cash flows continue growing rather than shrinking, which reflects a company that still invests heavily in product and athlete partnerships. This 2 Stage Free Cash Flow to Equity model indicates an intrinsic value of about $42.11 per share, which is close to the current market price and implies a 3.8% discount. The recent J.P. Morgan downgrade, which highlighted profit pressure and exposure to China, helps explain why the share price is not trading far above the DCF estimate despite positive product efforts. Overall, the DCF analysis indicates that NIKE stock currently appears approximately fairly valued on its projected cash flows. NIKE is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for NIKE. The P/E ratio suits NIKE because earnings are still a key anchor for how many investors look at large, brand driven consumer stocks. NIKE trades on a P/E of about 19.3x, which is almost exactly in line with the wider luxury and premium consumer group at about 19.3x, and above the broader peer set at roughly 15.1x. The more tailored fair P/E for NIKE, which factors in its size, margins and risk profile, is higher at about 25.6x. That is meaningfully above the current 19.3x level. On this view, the market is not paying up as much as the fair ratio estimate suggests, even after a period where the stock price has struggled and earnings risks have been in focus. On the P/E multiple alone, NIKE stock appears undervalued relative to the fair ratio that might be expected for its profile. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for NIKE pick up where this valuation puzzle leaves off. They spell out which assumptions about NIKE's future growth, margins and earnings would need to hold for the stock to be worth meaningfully more or less than today, and they sit on Simply Wall St's Community page. Each narrative links a specific fair value to a clear storyline about NIKE's potential catalysts and risks so you can see over time which version of events appears closer to reality. The NIKE community is split between a measured turnaround story and a more cautious view that recent resets still leave limited room for error. Bull case: 21% undervalued Read the full Bull Case to see why NIKE could be undervalued Bear case: 10% overvalued Read the full Bear Case to see why NIKE could be overvalued Do you think there's more to the story for NIKE? Head over to our Community to see what others are saying! Nike looks roughly in line with its Discounted Cash Flow (DCF) intrinsic value, while the P/E view points to an undervalued stock relative to its tailored fair ratio. The broader checks remain weak though, which tempers how much weight you might put on that single multiple signal. The real split between bulls and bears is whether Nike can protect margins while refreshing its product portfolio and managing China exposure. Your call comes down to whether current pricing reflects those execution and profit risks or whether the market is being overly cautious. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NKE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

(Bloomberg) -- Whoop Inc., the maker of popular screenless fitness trackers, plans to roughly double the size of its Boston headquarters, boosting a city struggling to grab a bigger piece of the artificial intelligence boom. Most Read from Bloomberg Phoebe Gates Knew Phia Shopping App Took Credit for Sales It Didn’t Drive Trump Weighs Call for Capital Gains Tax Cuts as Midterm Boost Tata Sons Chairman to Step Down, Deepening Leadership Turmoil Five Takeaways From Zuckerberg’s 6,500-Word Manifesto on AI Pakistan Says Deal Is Close Even as Iran, US Harden Stances Whoop plans to lease 107,000 square feet of office space in a building next to the company’s current headquarters near Fenway Park, a spokesperson said. The expansion will help support the company’s future growth and reflects its belief in the local talent pool, according to Chief Executive Officer Will Ahmed. The additional space can accommodate 1,000 employees. The lease hasn’t yet been finalized. Whoop is growing rapidly following a March fundraising round that valued the company at $10.1 billion. It plans to hire 600 people this year, a roughly 75% boost to its headcount, as it works to further integrate AI into its health and wellness monitoring tools and to expand internationally. Whoop is on track for an IPO in roughly 18 months, Ahmed said in an interview at Bloomberg’s Boston office on Tuesday, in line with the timetable he’s previously shared. Whoop is one of the largest office tenants in Kenmore Square, an area that’s also adjacent to Boston University and several of the city’s research hospitals that has seen significant development over the past decade. If finalized, the lease would be one of the largest in Boston’s office market to be signed this year. Having a Boston headquarters gives the company an advantage in employee retention versus startups based in New York or San Francisco, Ahmed said. “Boston’s been underrated in regards to a lot of what it can provide an up and coming company,” he said. The city breeds “missionaries” who stick with an employer because they believe in its mission, a contrast to the mercenary mindset of many in Silicon Valley, he said. “The folks that get a little caught up in the hype cycle of a tech company, or get too caught in the valuation speak or what’s en vogue, they are less likely to stick it out through some of the more challenging periods,” Ahmed said. Whoop is one of the leaders of the Massachusetts AI Coalition, a group of companies and investment firms organized this year that’s seeking to stem the westward migration of startup founders educated at the state’s elite universities like Harvard University and the Massachusetts Institute of Technology. Of the 20 most valuable venture-backed US AI companies as of this spring, none are headquartered in Massachusetts, even though half had co-founders who attended MIT or Harvard. “It’s hard to know at an early stage if a company is great, but you want to create an environment where they can continue to flourish,” Ahmed said, pointing to the importance of access to office space, capital and networking. “People are waking up around here being like, ‘We’ve got to do a little bit more. We’re taking for granted that we have such great talent here.’” Of the nearly 400 people Whoop has hired so far this year, more than 70% are for Boston-based roles. That includes new C-level hires like Chief Marketing Officer Dirk-Jan “DJ” van Hameren, a former Nike Inc. executive who relocated from that company’s headquarters in Beaverton, Oregon. The company requires its Boston employees to work from the office at least four days a week, Ahmed said. Boston’s Fenway neighborhood, where Whoop is based, had the highest office vacancy of any neighborhood in the city as of the end of the second quarter at 29.2%, according to CBRE Group Inc. data. The citywide vacancy rate was 18.7%. “CEOs have to play a role” in revitalizing downtowns, he said. Whoop employees “are going to be showing up in Boston in the heart of the city. And guess what they’re going to be doing for breakfast and lunch and dinner and happy hour? They’re going to be going out and spending.” Whoop is finding more success persuading candidates to move to Boston, according to Ahmed, who touts the city’s low crime rates, hospitals and schools. “If they’re going to be turned off by the weather, they may or may not be ready for the hard things we’re going to ask them to do,” Ahmed said. Whoop is facing increased competition from the likes of Alphabet Inc.’s Google, which released a $100 screenless Fitbit Air wearable in May while giving customers the option to pay $10 a month for extra features. Whoop, which doesn’t charge for hardware, requires membership plans that start at $200 a year. Ahmed says he sees Whoop as a premium product whose design and technology come at a cost. Whoop is pushing past its traditional fitness tracking into more general health offerings, including a partnership with the Natural Cycles birth control app. Its blood pressure tracking tool drew pushback from the US Food and Drug Administration last year, which initially deemed it an unapproved medical device before ultimately dropping the complaint in June. --With assistance from Samantha Murphy Kelly and Dana Wollman. Most Read from Bloomberg Businessweek Supercharged by Social Media, the GLP-1 Boom Is Warping Teen Psyches ICE Arrests Are Pushing Immigrant Families Deeper Into Poverty Suno Says AI Is the Future of Music. Record Labels Say It’s Theft Lululemon Is At War With Itself With EV Sales Slowing, Hybrid Cars Are Hot Again ©2026 Bloomberg L.P.