Research In Motion Limited (TSE:RIM) (NASDAQ:RIMM) and Netflix, Inc. (NASDAQ:NFLX) have gotten the boot from the NASDAQ-100, while Facebook Inc (NASDAQ:FB) has been added. The key stock market index is made up of the 100 largest non-financial stocks in the NASDAQ, and these changes will become effective before the market opens next Monday.
NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), the parent company of NASDAQ, re-ranks the stocks on its NASDAQ-100 Index list every year in December. NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) reports that NASDAQ-100 Index has returned 2,040 percent since it began.
In a press release making the announcement, NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) Executive Vice President John L. Jacons said, “The securities being added to the NASDAQ-100 Index will join Facebook, Costco, Apple, Google and other household names that are leading the new economy forward. Our objective re-ranking process ensures the NASDAQ-100 remains a relevant investable index that is the underlying benchmark for about 7,100 products in 22 countries with a notional value of about $1 trillion.”
At this year's annual Robin Hood conference, which was held virtually, the founder of the world's largest hedge fund, Ray Dalio, talked about asset bubbles and how investors could detect as well as deal with bubbles in the marketplace. Q1 2021 hedge fund letters, conferences and more Dalio believes that by studying past market cycles Read More
Removal of Research In Motion Limited (TSE:RIM) (NASDAQ:RIMM) comes at a difficult time for the company and its stock. Shares of Research In Motion Limited (TSE:RIM) (NASDAQ:RIMM) traded for more than $15 per share about a year ago before dipping down closer to $5 per share. The stock price began to make a comeback in recent weeks, but today it’s starting to slide again on the news of its removal from the NASDAQ-100 Index. Shares are down more than 1 percent since the market opened.
The removal of Netflix, Inc. (NASDAQ:NFLX) comes on the heels of the company’s big announcement that it will have access to exclusive streaming video content from The Walt Disney Company (NYSE:DIS). However Netflix, Inc. (NASDAQ:NFLX) has seen its problems this year. A licensing deal with HBO didn’t work out, and subscriber additions were disappointing this year.
This morning in early trades shares of Netflix, Inc. (NASDAQ:NFLX) began to fall on the news of the company’s removal from the NASDAQ-100 Index. They dropped more than 1 percent to around $92 per share. Less than a year ago investors were paying more than $120 per share.
Here’s the complete list of changes to the NASDAQ-100 for this year:
Analog Devices, Inc. (NASDAQ:ADI)
- Catamaran Corp (NASDAQ:CTRX)
- Discovery Communications Inc. (NASDAQ:DISCA) (NASDAQ:DISCA)
- Equinix Inc (NASDAQ:EQIX)
- Liberty Global Inc. (NASDAQ:LBTYA) (NASDAQ:LBTYB)
- Liberty Media Corp (Capital) (NASDAQ:LMCA)
- Regeneron Pharmaceuticals Inc (NASDAQ:REGN)
- SBA Communications Corporation (NASDAQ:SBAC)
- Verisk Analytics, Inc. (NASDAQ:VRSK)
Western Digital Corp. (NASDAQ:WDC)
Apollo Group Inc (NASDAQ:APOL)
- Electronic Arts Inc. (NASDAQ:EA)
- Flextronics International Ltd. (NASDAQ:FLEX) (FRA:FXI)
- Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)
- Lam Research Corporation (NASDAQ:LRCX)
- Marvell Technology Group Ltd. (NASDAQ:MRVL)
- Netflix, Inc. (NASDAQ:NFLX)
- Research In Motion Limited (TSE:RIM) (NASDAQ:RIMM)
- Verisign, Inc. (NASDAQ:VRSN)
Warner Chilcott Plc (NASDAQ:WCRX)