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Why is Adidas Stock so Cheap?

Adidas stock isn’t as bad as its share price suggests.

Andrew Willis 25 November, 2022 | 4:28AM
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Andrew Willis: As we mentioned a couple of weeks ago, Adidas (ADDYY) has been in the news for taking a stand against Ye, formerly known as Kanye West,’s offensive remarks. However, the market’s reaction was not what you’d expect.

After losing more than half of its value year to date, Adidas stock only dipped moderately... Until it made up for the loss – and more -  on expectations that it is hiring Puma (PUMA)’s outgoing CEO.

This incoming executive may have a positive outlook for Adidas, which we share. Equity analyst David Swartz says he does not believe the brand is impaired and he’s looking forward to getting the attention of fans at the upcoming FIFA World Cup, where those signature stripes could make a comeback.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
adidas AG ADR64.36 USD-0.51Rating
Puma SE49.86 EUR0.00

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar.ca. He previously produced content for Fidelity Investments and finance industry events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @Andrew_M_Willis.

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