Nike Dropped from S&P 100 Index Amid Struggling Valuation

Nike's (NKE) stock has been kicked out of the S&P 100 index, marking an end to its 18-year run. The decision is part of the quarterly rebalancing process, where companies are added or removed based on their market capitalization. In this case, NKE's declining valuation led to its removal.

The S&P 100 is a sub-set of the benchmark S&P 500 index and measures the performance of 100 blue-chip companies in the U.S. Based on market capitalization, Dell Technologies (DELL) will replace Nike in the S&P 100 index. DELL's share price has more than tripled year-to-date, while NKE's stock has fallen 39% this year.

Nike's struggles are well-documented. The company's fiscal 2026 revenue was flat at $46.4 billion, with sales in China continuing to slump. To address these issues, Nike is undertaking a turnaround strategy called 'Win Now.' This plan focuses on new athlete-driven marketing campaigns, streamlined products, and digital marketing efforts.