Palantir, MicroStrategy, and Axon Enterprise To Join Nasdaq 100
Key Takeaways
Palantir (
PLTR
), MicroStrategy (
MSTR
), and Axon Enterprise (
AXON
) are set to join the
Nasdaq 100 Index
on Monday, Dec. 23, replacing Super Micro Computer (
SMCI
), Moderna (
MRNA
), and Illumina (
ILMN
), as part of a reconstitution of the index, the Nasdaq said Friday.
It was a big week for the Nasdaq 100, which
topped the 20,000 level for the first time ever
Wednesday, as tech stocks soared in the wake of inflation data
reinforcing expectations of a rate cut
by the Federal Reserve next week.
The Nasdaq 100, which contains the 100 largest non-financial sector companies in the Nasdaq Composite Index, is reconstituted annually in December and rebalanced quarterly to weight its constituents by
market capitalization
.
The Dow and S&P 500 also recently announced changes to their members. Apollo Global Management (
APO
) and Workday (
WDAY
)are
set to join the S&P 500
later this month, replacing Qorvo (
QRVO
) and Amentum (
AMTM
).
Last month,
artificial intelligence (AI)
darling Nvidia (
NVDA
)
joined the Dow Jones Industrial Average
, replacing storied chipmaker Intel (
INTC
). Paint maker Sherwin-Williams (
SHW
) also joined the index, in the place of chemical giant Dow (
DOW
).
Palantir, MicroStrategy’s Inclusion Follows Recent Gains
Palantir’s stock has soared this year on the back of growing demand for its AI offerings. Its inclusion in the Nasdaq 100 also follows a strategic move to the Nasdaq from the New York Stock Exchange last month to become eligible.
Shares of MicroStrategy have surged along with the price of bitcoin (
BTCUSD
) in the wake of Donald Trump’s reelection, with the President-elect saying he wants to make the U.S. the ”
crypto capital of the planet
.”
Super Micro Computer Faces Key Deadline to Avoid Delisting
The decision to drop Super Micro Computer comes as the server maker faces a
February deadline
to file its delayed annual report, or face delisting by the Nasdaq.
The stock has had a volatile few months, rocked by concerns about allegations of accounting manipulation and delinquent disclosures, with the stock solidly in negative territory for the year just a few weeks ago, before recovering those losses in the past month. Through Friday’s close, the stock was up nearly 30% this year—though well off 2024 highs.
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