Nike is being removed from the S&P 100 Index effective September 21, ending nearly 18 years in the index. S&P Dow Jones Indices confirmed the change during its quarterly rebalance. The company retains its membership in the broader S&P 500.
Four technology companies are being promoted to fill the vacant seats: Dell Technologies, Palo Alto Networks, Arista Networks, and SanDisk. All four move up from the S&P 500. Nike is one of three other companies exiting the index on the same date, alongside Honeywell Aerospace, Simon Property Group, and Colgate-Palmolive.
The New S&P 100 Composition
The index now carries greater weight in information technology, particularly in chips, cloud hardware, and cybersecurity. Arista manufactures switches that connect artificial intelligence data centers. SanDisk, spun out from Western Digital last year, produces flash memory. Palo Alto Networks develops cybersecurity solutions. Dell rounds out the technology additions.
Index tracking funds must now purchase the four new constituents and sell the departing stocks. SanDisk shares rose following the announcement.
Nike's Decline
Nike's removal reflects a significant deterioration in its market value. The stock closed at $38.40 on Friday, marking its weakest level in 12 years. Nike has lost approximately half its value over the past year and roughly 76% over five years.
The company's market capitalization has fallen to approximately $57 billion from about $264 billion at the end of 2021. Over the same five-year period, the S&P 100 gained 83%.
Nike still generates substantially higher revenues than SanDisk, but investor focus has shifted toward growth in technology sectors.
