Nasdaq Inc (NDAQ, Financial) has announced the results of its annual reconstitution of the Nasdaq-100 Index®, which will take effect before the market opens on December 23, 2024. The reconstitution will see the addition of Palantir Technologies Inc. (PLTR), MicroStrategy Incorporated (MSTR), and Axon Enterprise, Inc. (AXON) to the index. Meanwhile, Illumina, Inc. (ILMN), Super Micro Computer, Inc. (SMCI), and Moderna, Inc. (MRNA) will be removed. The Nasdaq-100 Index® is a benchmark for financial products and is reconstituted annually in December.
Positive Aspects
- The inclusion of Palantir, MicroStrategy, and Axon highlights their growth and significance in the market.
- The Nasdaq-100 Index® continues to serve as a key benchmark for various financial products, enhancing its relevance.
- The reconstitution aligns with the quadruple witch expiration, ensuring timely updates to the index.
Negative Aspects
- Companies like Illumina, Super Micro Computer, and Moderna are being removed, which may impact their market perception.
- Frequent changes in the index composition could lead to volatility in related financial products.
Financial Analyst Perspective
The annual reconstitution of the Nasdaq-100 Index® is a significant event for investors and companies alike. The addition of Palantir, MicroStrategy, and Axon reflects their strong market performance and potential for future growth. However, the removal of companies like Illumina, Super Micro Computer, and Moderna may raise concerns about their current market standing and future prospects. Investors should consider these changes when evaluating their portfolios, as the index serves as a benchmark for numerous financial products.
Market Research Analyst Perspective
The reconstitution of the Nasdaq-100 Index® is a strategic move that reflects the evolving landscape of the technology and non-financial sectors. The inclusion of companies like Palantir, MicroStrategy, and Axon indicates a shift towards data analytics, enterprise software, and public safety technology. This change may influence market trends and investor focus in the coming year. The removal of certain companies also suggests a reevaluation of their market positions, which could impact their strategies and investor relations.
Frequently Asked Questions
Q: When will the reconstitution of the Nasdaq-100 Index® take effect?
A: The reconstitution will take effect before the market opens on December 23, 2024.
Q: Which companies are being added to the Nasdaq-100 Index®?
A: Palantir Technologies Inc. (PLTR), MicroStrategy Incorporated (MSTR), and Axon Enterprise, Inc. (AXON) are being added.
Q: Which companies are being removed from the Nasdaq-100 Index®?
A: Illumina, Inc. (ILMN), Super Micro Computer, Inc. (SMCI), and Moderna, Inc. (MRNA) are being removed.
Q: What is the significance of the Nasdaq-100 Index®?
A: The Nasdaq-100 Index® is a benchmark for financial products such as options, futures, and funds, representing 100 of the largest non-financial companies listed on the Nasdaq Stock Market®.
Read the original press release here.
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