Nike Stock Slips Premarket: Retail Calls Nike A 'Sinking Ship' After S&P 100 Exclusion

• Nike's S & P 100 removal highlights its decline as the index shifts toward AI-focused technology stocks. 
• Nike shares have suffered a sharp decline, losing nearly half their value over the past year.
• Nike CEO Elliott Hill is set to address shareholders at Nike's annual meeting Tuesday.  

Nike Inc. (NKE) stock slipped in premarket on Tuesday as the sneaker giant is set to be removed from the S & P 100, ending its 18-year run in the index. The move shows how much Nike has struggled as retail investors question its turnaround and markets favor AI-focused tech stocks. 

Nike stock edged 0.7% lower in Tuesday's premarket, trading at a twelve-year low. 

S & P 100 Exit Highlights Nike's Decline 

The S & P 100 index reshuffle underscores how far Nike has fallen from its former Wall Street glory and how aggressively the market is rotating toward AI infrastructure plays. 

Nike will keep its place in the broader S & P 500 and the Dow Jones Industrial Average, but its removal from the narrower 100-stock index, which tracks the largest, most established U.S. companies, strips it of demand from funds that mirror the benchmark. Index funds tracking the S & P 100 will now need to sell Nike shares and buy into the four incoming tech names, a mechanical rebalancing effect that can pressure a stock in the short term.

Nike wasn't alone in exiting. Honeywell Aerospace (HONA), Simon Property Group (SPG) and Colgate-Palmolive (CL) also lost their S & P 100 seats in the same quarterly rebalance. 

Notably, every replacement came from the information technology sector, tilting the index further toward chips, cloud infrastructure, and cybersecurity; Arista Networks (ANET) makes networking switches for AI data centers, SanDisk (SNDK) produces flash memory, and Palo Alto Networks (PANW) has been leaning into the AI security stack. 

Nike CEO Elliott Hill's Turnaround Faces Pressure 

Nike's exclusion reflects a brutal stretch for the stock. Shares closed Friday at $38.40, their weakest level in 12 years, leaving the company's market value near $57 billion, down from roughly $280 billion at the end of 2021. The stock has lost nearly half its value over the past year and 76% over five years. 

The decline has persisted even as CEO Elliott Hill pushes a turnaround to undo predecessor John Donahoe's direct-to-consumer strategy. Hill has pointed to progress in North America and running product sales, but told investors on Nike's fourth-quarter earnings call that the brand is not "living up to the potential." Shares are down 56% since Hill took over in October 2024.

Hill is set to address shareholders Tuesday at Nike's annual meeting. 

What NKE Retail Traders Are Saying 

On Stocktwits, retail sentiment around the stock remained in 'bearish' territory. 

A user said,“Will have to short this trash until it hits $5. Once removed from S & P 100 it will collapse like anything we have ever seen...sinking ship!”

Another user said a recent store visit felt stale, with limited product variety, weak sales and few appealing items. 

Another user added to the bearish tone, saying, Tanking in the overnight market. Shorting with both hands here! Only losers want to own this stock!!”

NKE stock has crashed 48% in the last twelve months. 

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