The price of any individual stock though is mostly determined by hype. Revenue and concrete performance plays a part but hype is very much a driving factor and hype is fickle.
Well tbh, hype does tell you something about future demand. It doesn't guarantee sales, but how excited people are about a product gives you an idea of how likely they are to buy it.
I think Nike lost some of its cool while the competition got better. For me, the turning point was walking into a Nike store and thinking their prices were way too high for what I was actually getting.
I reckon they'd be in a much worse position without Jordan. It's still a massive part of their appeal, even if its sales have slowed too.
And the stock market doesn't just look at today's revenue and performance. It also prices in what people expect to happen next. If people think a brand is losing its appeal, they won't necessarily wait for that to fully show up in the numbers.
Wall Street analysts would call "hype" as "investor sentiment". Equity stock prices have a portion of them that cannot be explained by models. Another way this appears: the price-earnings ratio. There are no good models that can accurately explain nor predict the P/E ratio for a single stock.
This is the naive short term way to think of a stock price. I assure you fund managers, hedge funds etc do not. And I'm sure you can reply with an anecdote, but that doesn't prove the rule of 'any stock'.
