Nike's Struggling Stock Performance Puts Dow Seat at Risk
Nike's presence in the Dow Jones Industrial Average is under scrutiny after its share price plummeted by 80% over the past five years, causing a significant decline in market value. The sportswear giant has been part of the S&P 100 since 2013 but will be removed from this index on September 21 as part of a quarterly rebalancing.
This development has sparked concerns that Nike may also be dropped from the Dow Jones Industrial Average, which it joined in 2013. Analysts point to its small market share and poor performance over the past year, with its shares currently trading at $36, making it the smallest factor in the price-weighted Dow index.
Nike's CEO Elliott Hill has emphasized that the company is navigating a complex macro environment, but analysts believe the sportswear giant is struggling to innovate and compete with upstarts. The company's share price decline has accompanied a prolonged struggle at Nike, which has led some investors to doubt its ability to remain in the Dow Jones Industrial Average.