Nike getting removed from the S&P 100 is genuinely one of the saddest corporate stories I have followed $177 in 2021 and $38 today.
u/Middle_Classroom_316 ·
Reddit — r/investing
· September 06, 2026 at 20:24
· ⬆ 305 pts
· 💬 151 comments
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AI Summary
Summary
Author reflects on Nike’s removal from the S&P 100 and its stock decline from ~$177 in 2021 to ~$38 today.
Thesis: Nike’s decline was a slow erosion caused by DTC strategy missteps, weakened retailer relationships, stale product cycles, and shifting value creation toward AI/infrastructure companies.
Author is uncertain whether Nike’s brand strength and Elliott Hill’s changes can revive it, or whether the competitive landscape has shifted permanently.
Quality assessment: More emotional/editorial commentary than rigorous financial DD; includes some factual context but relies heavily on narrative and market sentiment.
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I was loosely following nike for years and still wasnt prepared for seeing the removal headline . They have been in the S&P 100 for 18 years which is my entire adult life basically.
And it’s not even the stock price but just that the decline wasnt dramatic, there was no enron moment, scandal or one catastrophic decision. It was just a slow accumulation of slightly wrong calls over several years and the DTC pivot that pushed retailers away.maybe the product cycles that stopped feeling fresh and each thing on its own survivable. All of them together over five years and now they have lost $230 billion in market cap and they are being replaced in the index by a company that makes network switches for ai data centers.
The four companies taking nike's spots are dell, palo alto networks, arista networks and sandisk. So the slot that belonged to one of the most recognizable brands humans have ever built now belongs to infra that most consumers have never heard of and will never interact with directly.
And that’s not wrong, just where value is being created right now.
Nike stays in the S&P 500 so its not disappearing. Elliott hill has been making changes and the brand still exists in a way that cant be built from scratch.
Anyone bullish on NKE at these levels or has the competitive landscape shifted too permanently?