Nike is set to be removed from the S&P 100 index after a dramatic decline in its market value, ending a nearly 18-year tenure in the blue-chip index, according to an announcement from S&P Dow Jones Indices on Friday. The removal will take effect before trading begins on September 21 [1]. Nike's market capitalization has plummeted from a peak of approximately $281 billion in November 2021 to about $56.5 billion as of the most recent close, representing a loss of more than $220 billion in market value and a 79% drop from its November 5, 2021 intraday record of $179.10 per share [1].
The article attributes Nike's decline to a combination of factors, including the company's decision to engage in left-wing political messaging over the past decade, which the author suggests alienated some customers. However, it is explicitly stated that S&P Dow Jones Indices did not remove Nike from the S&P 100 due to political reasons, but rather because of the significant collapse in the company's value [1].
Nike's market position has shifted dramatically; the company is now worth about one-fifth of what it was five years ago and has lost its place among America's premier blue-chip companies. Despite this setback, Nike will continue to operate, selling billions of dollars in shoes and maintaining endorsements with major athletes [1].
The article also references Nike's strategic decisions, such as making Colin Kaepernick the face of its 30th-anniversary 'Just Do It' campaign, and its approach to the Chinese market, but does not provide additional financial data or analyst opinions regarding future performance [1].
CONCLUSION
Nike's removal from the S&P 100 marks a significant downturn for the sports apparel giant, driven by a $220 billion collapse in market value. While the company remains operational and continues to generate substantial sales, its diminished market capitalization and loss of blue-chip status signal a major shift in investor confidence and market perception.