Palantir Technologies (PLTR) and MicroStrategy (MSTR), two of the hottest stocks in 2024, are expected to join the Nasdaq 100 index. The Nasdaq late Friday also is likely to announce that data-center REIT Equinix (EQIX) will join the index as part of the annual rebalancing. Axon Enterprise (AXON) and United Airlines (UAL), two other big 2024 winners, also could get the nod.
On the way out? Moderna (MRNA) and Super Micro Computer (SMCI) are among the smallest Nasdaq 100 members. Moderna stock has plunged in 2024, while Super Micro has dived from its March peak amid major accounting woes.
SMCI stock fell solidly late Friday — ahead of the Nasdaq 100 rebalancing — on a Bloomberg report that it’s hired Evercore to help raise capital.
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Tricky Rotations But Tech Leaders Surge; GOOGL, AVGO, CRDO In Focus
The Nasdaq 100 includes the 100 largest non-financial stocks. It’s dominated by the Magnificent Seven: Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOGL), Amazon.com (AMZN), Meta Platforms (META) and Tesla (TSLA).
Palantir’s entry into the Nasdaq 100 has been expected after the AI data analytics play switched its listing to the Nasdaq composite from the New York Stock Exchange in November. At $169 billion, its market cap is higher than many current Nasdaq 100 members.
MicroStrategy is a money-losing software company that is largely a leveraged bitcoin play. It’s sold stock and debt to buy up more and more of the cryptocurrency. Its market cap is at $82 billion.
Mutual funds and ETFs that track the Nasdaq 100 will need to buy or sell stocks that join or exit the index. But the money involved is far less than that tracking the S&P 500 index.
Axon stock is on IBD Leaderboard. Palantir stock and Axon Enterprise are on the IBD 50.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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