Nike plummets 79%, kicked out of the S&P 100 for the first time—what’s the real reason? Nike has dropped 79% over five years and was just booted from the S&P 100, ending an 18-year streak. From its 2021 peak of $179, it’s now down to $38, wiping out over $220 billion in market value. The core reason boils down to six words: You reap what you sow❗️ (1) The DTC strategy wrecked its channels. Former CEO Donahoe aggressively cut off wholesalers and pushed direct-to-consumer sales, causing a complete channel breakdown. By the time they realized and tried to fix it, brands like HOKA had already taken over the shelves. (2) Recycling old products with no innovation. Re-releasing old models with new colorways and calling them “new” isn’t cutting it. There’s a lack of real technological breakthroughs, and consumers are getting bored. (3) Moving production lines from China to Vietnam backfired. China has seen eight consecutive quarters of decline. Meanwhile, Anta and Li-Ning are squeezing Nike from both ends—Anta is capturing the middle class, and Li-Ning is dominating the mass market. Nike’s premium pricing power is being eroded. When the times leave you behind, they won’t even say goodbye. What other reasons do you think are causing Nike’s continued decline?