Nike May Be Removed From the Dow Jones Industrial Average, With Berkshire Hathaway as a Likely Replacement

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โดย The Motley Fool·Read original
Summary · why it matters

Nike is at risk of being removed from the Dow Jones Industrial Average due to its low share price and underperformance, with Berkshire Hathaway seen as the ideal replacement. The Dow is a share-price-weighted index, and Nike's stock closed at $44.37 on July 10, the lowest among the 30 components, giving it minimal influence. Since joining the index in September 2013, Nike has gained only 29% while the Dow has rallied 242%, as its direct-to-consumer strategy faltered and damaged wholesale relationships. Berkshire Hathaway, now a trillion-dollar conglomerate built by Warren Buffett, has Class B shares trading at $494, which would fit well among the Dow's increasingly high-priced components. The main hurdle is Berkshire's $349 billion investment portfolio, which already holds stakes in several Dow members like Apple, American Express, and Alphabet, potentially concentrating the index further.

Impact on stocks 6

Artificial Intelligence▲ · 3 stocks
Consumer Discretionary▼ · 1 stocks
Nike Inc
NKE
▼ NegativeCapitalrelevance

Nike is at risk of being removed from the Dow due to low share price and underperformance, which is a negative index event.

Energy Transition & Power Demand▲ · 1 stocks
Berkshire Hathaway Inc
BRK-B
▲ PositiveCapitalrelevance

Berkshire Hathaway is mentioned as a likely replacement for Nike in the Dow, which would increase its visibility and index inclusion.

Digital Finance & Tokenization▲ · 1 stocks
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