Nasdaq-100 rebalance adds a trio of top tech stocks

Every December, Nasdaq, which operates the Nasdaq stock exchange and exchanges in the US and Europe, updates its main Nasdaq-100 index.

The index, which was established in 1985, includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange, with the key variable being the market values ​​of the component stocks.

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The index, which rose 29.4% in 2024 (after a 53.8% gain in 2023), is widely followed because its members include all the top technology stocks, including Apple (AAPL) NVIDIA (NVDA) Microsoft (MSFT) Amazon.com (AMZN) Meta platforms (META) Google native alphabet (GOOGLE) and (GOOGLE) and Tesla (TSLA) .

Related: Analyst who correctly said Apple stock would increase on outlook updates

Three stocks will be added to the index before the market opens on Monday, December 23. All three have seen big gains so far in 2024 and have among the largest market capitalizations of companies not members of the Nasdaq-100.

Included in the index are:

Palantir (PLTR) The Denver company that specializes in big data analytics software. Co-founded by Alex Karp, Peter Thiel and others.

Its original clients were the US government, but it has expanded to work with corporate clients and others. Its Palantir Gotham product is an intelligence and defense tool used by military and counterterrorism analysts.

Related: Here’s what a veteran trader who predicted Palantir’s stock rally is now saying

• Market cap: $173.3 billion.

• Share price Dec. 13: $76.07, up 3.9% on the day.

• Year-to-date change: 343%.

Micro strategy (MSTR) based in suburban Washington, DC, specializes in business intelligence, mobile software and cloud-based services.

It is also known as a proxy for bitcoin due to its massive holdings of the cryptocurrency. As of Friday, according to BitBO.IO, the company had invested $23.4 billion in buying 423,650 bitcoins. Average price per bitcoin: $58,219. Current value of holdings: $43.1 billion.

• Market cap: $97.9 billion.

• Share price Dec. 13: $408.67, up 4.2% on the day.

• Year-to-date change: 547%.

Axon Enterprise (AAXN) Scottsdale, Ariz., company that develops technology and weapons for military, law enforcement and civilians. Its best-known product is Taser, the electronic shock system.

• Market cap: $49.2 billion.

• Share price Dec. 13: $644.91, up 1.3% on the day.

• Year-to-date change: 149.7%.

The story continues

These three stocks are removed from the index, but are still listed on the Nasdaq.

Illumina (ILMN) the San Diego-based developer of genetic research products.

• Market cap: $22.8 billion.

• Share price Dec. 13: $143.87, up 1.75% on the day.

• Year-to-date change: 6.22%.

More Wall Street analysts:

Super micro computer (SMCI) the manufacturer of highly advanced computers used to process artificial intelligence data. The company’s share price has been hit by ongoing concerns over the quality of its accounts and financial statements. Ernst & Young stopped as the company’s auditor in October.

Related: Super Micro’s share price rises on key ruling

• Market cap: $21.3 billion.

• Share price Dec. 13: $36.45, up 3.9% on the day.

• Year-to-date change: -73.1%

Modern (MRNA) the developer of drugs used to prevent the Covid-19 virus. The company’s sales have fallen as the pandemic subsided.

• Market cap: $16.1 billion.

• Share price Dec. 13: $41.83, up 2.3% on the day.

• Year-to-date change: -57.9%.

The Nasdaq-100 is the foundation of the Invesco QQQ Trust QQQwhich aims to produce results that mirror those of the index. Results are before expenses.

Nasdaq’s move was made ahead of the quadruple witching on December 20. The witching is the simultaneous expiration of four financial contracts: stock options, stock index options, stock index futures and single stock futures.

The quadruple hex usually generates massive market activity in the last hour of the expiration date.

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