When powerhouse brands join forces — think tech meets athletics or fashion meets value — both consumer excitement and stock markets often respond. Legendary partnerships like Nike x Apple, Target x Missoni, and Adidas x Yeezy didn’t just spark media buzz, they triggered clear stock performance gains.
But are these brand collaborations still smart investments today, especially for U.S. investors?
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Brand collabs like Nike-Apple, Target-Missoni, and Adidas-Yeezy delivered immediate stock boosts.
- Nike-Apple tied tech and fitness seamlessly, pushing stocks ~8% higher.
- Target-Missoni created a fashion frenzy — Target jumped 22%, though recent volatility tempers enthusiasm.
- Adidas-Yeezy generated ~$2 billion annually for years, but the deal’s collapse dramatically impacted earnings.
According to finance expert Andrew Lokenauth with Be Fluent in Finance, “Successful brand collabs typically provide a short-term stock boost–but long-term performance depends on fundamentals.”
Below, explore three standout deals he says shaped markets — and whether they’re still worth a bet now.
Nike-Apple Tech Tie-Up: Boosting Stocks by 8%
Nearly 20 years ago, Nike and Apple first teamed up for the Nike + iPod Sport Kit — cutting-edge tech that merged fitness tracking with digital music-which was designed to “change the way people run,” former Nike President and CEO Mark Parker said in the 2006 press release announcing the partnership.
It was a highly successful alliance that led to several other collaborations over the last two decades. One key reason this partnership has thrived is the smooth integration between both platforms — a hallmark of Apple’s ecosystem, which helped solidify brand loyalty and lure new customers for both, the CMO Club reported.
In terms of the financial impact, Lokenauth said the partnership “sent both stocks up about 8% in the following month.” He explained, “Apple’s stock jumped from $65 to $71, while Nike saw gains from $42 to $45. I remember watching this unfold — it was a perfect marriage of tech and athletics that transformed both sectors.”
Nike and Apple have continued to team up over the years, and Lokenauth explained that Apple remains a strong buy.
“Their services revenue keeps growing (now over $85B annually), and their brand collaborations continue driving hardware sales,” he said. “I’ve held Apple stock for years and keep adding on dips.”
For Nike, it’s a safe bet to invest long-term.
“Their direct-to-consumer strategy is working ($5B+ in digital sales), and partnerships with tech companies keep them innovative,” said Lokenauth. “I’ve been steadily accumulating shares under $100.”
Target Meets Missoni: 22% Stock Jump — but Can It Last?
In 2011, Target sent fashionistas into a frenzy with its collaboration with the high-end brand Missoni. Shoppers could get their hands on luxury goods without taking out a loan, while Missoni attracted a new customer base.
“Working with Target to create a mass collection that reflects the spirit of Missoni has been extremely energizing,” said Angela Missoni in a 2011 press release. “Each piece is special to me because so much thought and care went into every aspect of the design.”
According to Lokenauth, “The Target x Missoni was mind-blowing.” He said, “Target’s stock soared 22% to $51.40 after the collection sold out in hours. I actually tried buying some pieces myself, but the website crashed — that’s how insane the demand was.”
Target has had a rough few years with the pandemic, inflation, less exciting collaborations, political ties, and DEI rollback, per CNBC. The outlet reported shares have dropped 61% since 2021, and Lokenauth agrees that investing in Target right now is “trickier.”
He explained, “While their designer collabs still generate buzz, margins are getting squeezed by inflation and inventory issues. I’d wait for a better entry point — maybe around $130-140.”
Adidas-Yeezy Empire: $2 Billion, Then Earnings Eroded
One of the most lucrative deals between a musician and the fashion world was between Adidas and Kanye West. In 2021, Yeezy was valued at between $3.2 billion and $4.7 billion, Bloomberg reported, and Lokenauth said, “Adidas x Yeezy (2015-2022) drove Adidas stock up roughly 30% in the first year.”
He added, “The collab generated about $2 billion annually for Adidas before ending. I’d watched this partnership evolve from footwear to a full fashion empire.”
However, in 2022, Adidas terminated its partnership with the rapper due to antisemitism remarks, per CNN, and is still recovering from the blowout, Lokenauth said.
“At current prices ($30-35 range), there’s decent upside potential,” he explained. “They’re refocusing on core products and new collabs. I started building a small position recently.”
Brand collaborations can be financially rewarding as an investor, but Lokenauth suggests “looking beyond the hype and focus on solid business metrics.”
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This article originally appeared on GOBankingRates.com: Nike-Apple and 2 Other Brand Collabs That Sent Stocks Soaring — Are They Still Good Investments?
