The US tech stocks index NASDAQ is being shaken up. Among others, MicroStrategy and Palantir have opened a new chapter in their stock market history.
• Rebalancing of the NASDAQ 100 occurs
• Palantir and MicroStrategy celebrate inclusion in the NASDAQ 100
• Price gains ahead
The NASDAQ 100 index lists the largest 100 companies from the NASDAQ Composite tech stocks index that do not come from the financial sector. In addition to market capitalization, a strong daily trading volume is also crucial for index inclusion. Among others, two stock companies that were among the biggest investor favorites in 2024 met the conditions.
MicroStrategy and Palantir create index inclusion
As the NASDAQ Stock Exchange announced on Friday after the market closed, the software companies MicroStrategy and Palantir are new members of the renowned stock exchange index as part of the annual index review. The adjustments will be implemented from December 23rd, one day before Christmas Eve.
It had already become apparent in the last few days that both Palantir and MicroStrategy would make it into the NASDAQ 100 index. AI profiteer Palantir by far topped the list of the largest NASDAQ companies by market capitalization that are not listed in the 100 index, and MicroStrategy was also able to significantly outperform most of the companies in question in terms of market value.
Further price gains ahead?
In the year to date, Palantir shares have already increased by well over 340 percent, while MicroStrategy, the largest Bitcoin owner at the company level, has even increased by around 540 percent.
The index inclusion that has now been announced could further boost the companies’ stock market prices because, unlike the NASDAQ Composite, there is higher visibility in the elite stock market segment NASDAQ-100. The redesign of the index also forces ETF and fund providers to update their products and buy stocks to replicate the new index. A look at history also shows that this is regularly reflected in higher stock market prices: between 2014 and 2023, 85 companies were included in the NASDAQ 100, and their share prices rose by an average of 17 percent in the 12-month period after their inclusion, writes “The Motley Fool” with a view to possible price potential.
Other index risers and fallers
In addition to Palantir and MicroStrategy, Axon has also been included in the NASDAQ 100 index. Meanwhile, Illumina, Super Micro Computer and Moderna no longer met the criteria for staying.
Editorial team finanzen.net
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