What Nike’s ‘Embarrassing’ S&P 100 Exit Really Means

Nike's upcoming removal from the S&P 100 index, effective Sept. 21, is not a significant concern, but it highlights the company's struggles. The sportswear giant has been part of the index for about 18 years, but its stock has dropped nearly 40% so far this year, and its market capitalization has declined by 78% over the past five years.

Analysts say it's not uncommon for well-known companies to be replaced in the index, and falling out of it doesn't necessarily signal a company's demise. Morningstar analyst David Swartz described the exit as "a bit embarrassing, but otherwise irrelevant." However, falling out of the more widely recognized S&P 500, which tracks 500 of the largest publicly traded U.S. companies, could be more significant as it serves as a snapshot of the broader stock market.