MicroStrategy (NASDAQ:MSTR), Palantir Technologies (NASDAQ:PLTR) and Axon Enterprise (NASDAQ:AXON) are set to join the technology-heavy NASDAQ 100 (NDX) index on December 23.
Those three companies and their stocks will replace Super Micro Computer (NASDAQ:SMCI), Moderna (NASDAQ:MRNA) and Illumina (NASDAQ:ILMN) in the index.
This reshuffling of the NASDAQ 100 will commence on Monday, December 23 before the market opens. It’s part of an annual reconstitution process for the NASDAQ 100 index, which includes members of the much larger NASDAQ Composite (IXIC) with the biggest market capitalizations.
Analysis: An early holiday gift for three growing businesses
Every year, the NASDAQ 100 removes some companies with the smallest market capitalizations and replaces them with businesses with the highest market caps from the NASDAQ Composite that aren’t already in the NASDAQ 100.
It might be considered an early holiday gift for MicroStrategy, Palantir Technologies and Axon Enterprise, which will be included in the prestigious NASDAQ 100 on the morning of December 23.
At the same time, it’s an unfortunate development for Super Micro Computer, Moderna and Illumina, which will be dropped from the NASDAQ 100.
The decline of Super Micro Computer has been particularly striking. The server maker was a darling of the market just a year ago, but lost favor as Super Micro Computer delayed filing financial reports with the Securities and Exchange Commission (SEC).
Moderna, meanwhile, experienced a market cap decline after President-elect Donald Trump nominated Robert F. Kennedy Jr. to head the U.S. Health and Human Services Dept. The New York Times described Kennedy Jr. as a “vaccine skeptic who has unorthodox views about medicine,” and Moderna develops vaccines among other pharmaceutical products.
Illumina is a biotechnology firm with customers that include pharmaceutical companies. Illumina shares have lost significant value since peaking at around $500 in 2021.
The market chooses winners in 2024
In contrast, the market has clearly favored software developer and Bitcoin (BTC-USD) stockpiler MicroStrategy, data analytics and artificial intelligence (AI) technology specialist Palantir Technologies in 2024.
Some investors might not be familiar with Axon Enterprise, which was once best known for its flagship product, the Taser electroshock weapon. Nowadays, Axon Enterprise is a diversified technology business that caters to military and law enforcement with products such as body-worn cameras and vehicle dashboard cameras.
Inclusion in the NASDAQ 100 will likely boost the profiles of MicroStrategy, Palantir Technologies and Axon Enterprise, which are already popular among stock traders in 2024.
As for Super Micro Computer, Moderna and Illumina, they will have the challenging task of regaining the market’s favor during the coming year.
