On Holdings Plunges 19% as Federer Drops Below Billionaire Status on August 13

Roger Federer is no longer a billionaire. On Holding shares crashed 19% on Tuesday after the Swiss sportswear company reported second-quarter sales that fell short of market expectations. Federer’s 2.5% stake in the Zurich-based firm cost him roughly $52 million in a single day. Forbes now values his fortune at $949 million, down from over $1.1 billion just weeks earlier. The tennis legend held billionaire status for less than a year.

Why On’s earnings miss hit so hard

On reported strong profitability in Q2: net income of 105 million francs ($129.4 million) and a gross profit margin of 65.4%, both beating prior-year results. Yet the market punished the stock because revenue missed analyst expectations. The sell-off was swift and severe. Meyka rates ONON a B+ with a 12-month price target of $52.08, suggesting the stock has room to recover from its current $31.01 level.

Federer’s wealth tied to On’s fate

Federer joined On as a co-owner and partner in 2019. His stake in the company, combined with endorsement deals worth hundreds of millions from Uniqlo, Rolex, Mercedes-Benz, and others, pushed him past the $1 billion mark in 2025. During his 24-year tennis career, he earned over $130 million in prize money. His Uniqlo apparel deal alone was worth $211 million over 10 years, signed in 2018 after his 24-year partnership with Nike ended.

On’s stock remains under pressure

On shares have fallen 37.8% over the past year and 33.3% year-to-date. The company’s PE ratio stands at 26.5, and Meyka’s technical indicators show the stock in oversold territory with an RSI of 32.31. Nine analysts rate the stock a buy, one holds, and none recommend selling. Despite the recent decline, the consensus suggests limited downside from current levels.

What this means for Federer’s fortune

Federer remains extraordinarily wealthy at $949 million. His billionaire status was always fragile, tied directly to On’s valuation. A 19% stock drop erased his margin above $1 billion in hours. If On recovers toward Meyka’s price target of $52.08, Federer could return to billionaire status. His endorsement income continues regardless of the stock price.

Final Thoughts

Federer’s drop below billionaire status highlights how concentrated wealth can be in a single stock. On’s miss was real, but the company’s fundamentals remain solid. With nine buy ratings and Meyka grading the stock B+, recovery is possible.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.