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Nike Exits S&P 100 as Shares Fall Below $40

By Markets Desk · 2026-09-12 · 1 min read
A pair of worn athletic running shoes resting on a concrete surface
Illustration: Tradingbird

Nike shares dropped below $40 for the first time since 2014. The company faces removal from the S&P 100 index this month. This move signals a significant decline in market capitalization.

Nike shares closed at $36.82 on September 11, 2026. The stock is down more than 40 percent for the year. It recently broke below the $40 level. This was the first time since 2014 that the share price fell that low.

The sportswear giant is set to be removed from the S&P 100 index. This change occurs later this month. The index tracks America's 100 largest companies by market value. Nike remains a member of the broader S&P 500 index.

Index Removal Triggers Mechanical Selling

Funds tracking the S&P 100 must sell Nike shares. This action is mechanical and required by the index rules. The selling adds downward pressure on the stock price in the short term. It does not reflect a change in the company's underlying business operations.

The demotion symbolizes the shrinkage of Nike's market value. Other companies, mostly in technology, have grown large enough to replace it. The event captures the extent of the recent decline in investor confidence. It serves as a marker for the stock's performance trajectory.

Revenue Decline and Regional Weakness

Nike's revenue has declined in recent quarters. Sales in the direct-to-consumer segment are falling. The digital business arm is experiencing outright contraction. China, a key growth market, has seen sharp drops in sales.

Demand in the Chinese region is weak. Inventory levels are aging. Tariff-related headwills further complicate the situation. Competitors are gaining share in running and lifestyle categories. These factors weigh on the company's revenue outlook.

Valuation Gap and Turnaround Strategy

Nike trades at approximately 17.61 times earnings. Lululemon Athletica trades at around 8 times earnings. This valuation gap highlights skepticism among investors. The stock price target stands at $50.12. The current price is significantly below this level.

CEO Elliott Hill is driving a turnaround focused on sport. The strategy aims to repair wholesale relationships. The running business is showing signs of recovery. Wholesale sales are returning to growth. An earnings report is expected in the coming weeks.

Based on reporting by MarketBeat, compiled by the Tradingbird desk.

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