Prediction: Nike Will Be Booted From the Dow Jones Industrial Average Within 12 Months and Replaced by One of 2 Consumer-Facing Giants Change is in the air — and it has nothing to do with the weather.
Earlier this week, S&P Dow Jones Indices oversaw the removal of telecom titan Verizon Communications from the iconic Dow Jones Industrial Average (DJINDICES: ^DJI) and the addition of Google parent Alphabet
It marked the 54th time since the Dow’s inception in May 1896 that a company was added or removed. But S&P Dow Jones Indices isn’t finished. Over the next 12 months, brand-name retailer Nike (NYSE: NKE) should be given the boot, with one of two consumer-facing goliaths — Tesla (NASDAQ: TSLA) or Airbnb (NASDAQ: ABNB) — serving as logical replacements.
The clock is ticking for Nike Arguably, the biggest issue for Nike’s tenure as a Dow component is its share price. Unlike the S&P 500 and Nasdaq Composite, which are market-cap-weighted indexes, the Dow Jones Industrial Average is a share-price-weighted index. The higher a company’s share price, the more influence it holds within the Dow.