Nike’s falling share price puts its Dow seat in jeopardy
The sportswear giant is the Dow Jones Industrial Average’s worst performer, with the smallest weighting among the index's 30 components.
Nike's stock value has plummeted by 80% over the last five years, putting the company in danger of being removed from the Dow Jones Industrial Average. This month, S&P Dow Jones Indices announced that Nike would be removed from the S&P 100 before trading begins on September 21, after 18 years in the index of blue-chip companies.
Analysts cited the 80% slump in market value, due to slow sales, lack of innovation, and competition from new players. Since joining in 2013, Nike's shares have only risen 5%, while the S&P 500 has more than quadrupled. With a current share price of US$36, Nike is the smallest factor in the price-weighted Dow index, making it a prime candidate for removal.
Unlike other indices, the Dow is weighted by share price alone and has no specific eligibility criteria for changes. Analysts believe the odds of Nike's removal are higher in the coming year, though there is no set timeline for such decisions.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Nike’s falling share price puts its Dow seat in jeopardy freemalaysiatoday.com
- Nike’s falling share price puts its Dow seat in jeopardy investing.com
