Netflix, Inc. (NASDAQ:NFLX) will become part of the NASDAQ-100 Index (NASDAQ:NDX) starting on June 6, according to a statement from NASDAQ OMX Group, Inc. (NASDAQ:NDAQ). The company will also be part of the NASDAQ-100 Equal-Weighted Index (NASDAQ:NDXE) and the NASDAQ-100 Ex-Technology Sector Index (NASDAQ:NDXX).
Details On Netflix’s Addition To The NASDAQ-100
The addition will take place before the markets open on June 6. The streaming video giant replaces Perrigo Company (NASDAQ:PRGO) in the indices. Perrigo Company (NASDAQ:PRGO) said last week that it was going to transfer its stock listing from the NASDAQ to the New York Stock Exchange.
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The NASDAQ-100 Indexes span various geographies and asset classes. It covers a variety of areas including dividend achievers, green economy and commodity indexes.
Netflix’s Stock On The Rise
So far this year, the value shares of Netflix, Inc. (NASDAQ:NFLX) has more than doubled. The fact that it’s being added to the NASDAQ-100 Index will likely help increase that value further because there are investment funds which require that some percentage of their capital be invested in the index. As of this writing in fact, shares of Netflix were up 2 percent.
Content Concerns About Netflix
Some analysts have expressed concerns about Netflix, Inc. (NASDAQ:NFLX)’s rising content costs as it signs more and more deals for exclusive content while also creating its own content. This week Netflix launched its own new episodes of the once-popular show “Arrested Development.” Unfortunately though, reception has not been good. The New York Times even went so far as to say that the new episodes actually killed the show. Netflix is planning to increase its spending on original content over the next couple of years.
Other video streaming companies are also joining Netflix on the content creation bandwagon. Hulu and Amazon.com, Inc. (NASDAQ:AMZN) are both investing in their own programming. The companies are undoubtedly attempting to compete with subscription cable channels like HBO and Showtime.