Nike lost its blue-chip badge but not its swagger

Since its peak in November 2021, Nike Inc. (NKE) stock has lost nearly $220 billion in market value, leaving the shares 78% below their all-time high. This decline has coincided with the company losing its blue-chip designation from the S&P 100, marking the end of an 18-year tenure in one of the market's most selective stock indexes.

Despite this setback, Nike successfully secured a new 10-year, $200 million deal with the University of Miami, replacing Adidas who had been the team's official apparel partner since 2015. Nike's market value has fallen below $100 billion, and the stock has struggled to recover, with analysts split on its prospects for growth. The company is now focusing on regaining control of its own sales channels in Greater China, where rivals Anta and Li Ning have gained market share.

Nike's equity is being re-rated in real time, as the stock's commercial standing remains high despite its financial performance.