Important points
Palantir (PLTR), MicroStrategy (MSTR), and Axon Enterprise (AXON) are scheduled to join the Nasdaq 100 Index on Monday, December 23rd, replacing Super Micro Computer (SMCI), Moderna (MRNA), and Illumina (ILMN). Nasdaq made the announcement Friday as part of its index reconstitution.
Wednesday was a big week for the Nasdaq 100, which breached the 20,000 mark for the first time as tech stocks soared on inflation data that reinforced expectations for a rate cut next week by the U.S. Federal Reserve.
The Nasdaq 100 is comprised of the 100 largest non-financial companies in the Nasdaq Composite Index, which is reconstituted each December and weighted by market capitalization quarterly.
The Dow and S&P 500 also recently announced changes to their membership. Apollo Global Management (APO) and Workday (WDAY) will join the S&P 500 later this month, replacing Quarvo (QRVO) and Amentum (AMTM).
Last month, popular artificial intelligence (AI) company Nvidia (NVDA) joined the Dow Jones Industrial Average, replacing storied chipmaker Intel (INTC). Paint maker Sherwin-Williams (SHW) also joined the index, replacing chemical giant Dow (DOW).
Palantir joins MicroStrategy following recent successes
Palantir stock has soared this year on the back of growing demand for the company’s AI products. The company’s induction into the Nasdaq 100 follows its strategic transition from the New York Stock Exchange to the Nasdaq last month to gain eligibility.
MicroStrategy’s stock price soared along with the price of Bitcoin (BTCUSD) after Donald Trump’s re-election and stated that he wants to make the United States the “crypto capital of the planet.”
Supermicrocomputer faces critical deadline to avoid delisting
The decision to discontinue the supermicrocomputer 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 amid concerns about accounting manipulation and missed disclosures, dropping firmly into negative territory for the year just a few weeks ago, before recouping those losses last month. By Friday’s close, the stock had risen nearly 30% since the beginning of the year, but was well short of its 2024 high.
