announcement to come out on 12/13/2024, this Friday.
https://www.barrons.com/articles/palantir-stock-price-nasdaq-rebalance-qqq-80c9ab9c
Palantir Technologiesleads the list of a half dozen companies that could be added to the $26 trillionNasdaq 100index at its annual reconstitution, due to be announced on Dec. 13.
Other candidates for inclusion at the reconstitution, in order of market value, areMicroStrategy,Equinix,CME Group,Interactive Brokers, andCoinbase Global, according to Dow Jones Market Data.
Palantir moved to the Nasdaq from the New York Stock Exchange onNov. 26, citing its potential for inclusion in the Nasdaq 100. The company was valued at $152 billion on Friday. Coinbase, the smallest of the six potential entrants, had a market capitalization of $74.2 billion on Friday.
Note: as of Nov. 29
Source: FactSet
The Nasdaq 100 is the basis for the popularInvesco QQQ Trust(ticker: QQQ), which has $292 billion in assets and is one of the largest exchange-traded funds.
While ETFs and index products based on the Nasdaq 100 are nowhere near as large as those based on theSP 500, they are significant. Companies added to the Nasdaq 100 can rally on news of inclusion as indexers and ETF managers buy the stocks.
Changes to theNasdaq 100 tend to be mechanical based on market value. SP 500 additions, meanwhile, are based on a selective and secretive process by the index committee at SP Dow Jones Indices that includes several criteria, including market value, profitability, and industry group.
The Nasdaq 100 companies with the lowest market values, and thus vulnerable to deletion at the reconstitution, are led byModerna,Super Micro Computer,Biogen,CDW, andMongoDB. These companies, ranked from lowest to highest, range in market value from $16.6 billion to $23.8 billion. Theyre vulnerable, in part, because they have market values of less than 0.1% of the indexs value.
Note: as of Nov. 29
Source: FactSet
The annual Nasdaq 100 reconstitution is a process in which Nasdaq-listed companies are ranked by market value based on stock prices on the last trading day of November, which is Nov. 29 this year. Any changes to the index are due to be announced on Dec. 13 this year, or the second Friday of December.
There wereseven companies addedandseven droppedduring the December reconstitution last year. CDW,Coca-Cola Europacific Partners,DoorDash, MongoDB,Roper Technologies, Splunk, andTake-Two Interactive Softwarewere added.
Companies can also be added and dropped from the Nasdaq 100 during the year and outside the reconstitution event.AppLovin, for example,joined the index in mid-November, replacingDollar Tree. At that time, AppLovin was the largest Nasdaq company not in the Nasdaq 100.
Write to Andrew Bary atandrew.bary@barrons.com