Big Changes Coming in Nasdaq-100 Membership

The Nasdaq-100 Index, a benchmark for financial products such as options, futures, and funds, is set to undergo significant changes with the addition of six new companies and the removal of seven others. This annual reconstitution, effective prior to market open on Monday, December 23, 2024, will introduce a fresh mix of non-financial companies to the index, providing a more up-to-date representation of the non-financial sector listed on The Nasdaq Stock Market®.

The six companies being added to the Nasdaq-100 Index® are:

1. Palantir Technologies Inc. (Nasdaq: PLTR) - A software company specializing in big data analytics and integration. Palantir's market capitalization is approximately $20 billion, and its stock price has been volatile, with a 52-week range of $6.12 to $29.50. The company has shown strong revenue growth, with a compound annual growth rate (CAGR) of 35% over the past three years.
2. MicroStrategy Incorporated (Nasdaq: MSTR) - A business intelligence and analytics software provider. MicroStrategy's market capitalization is around $15 billion, and its stock price has been more stable, with a 52-week range of $275.00 to $590.00. The company has demonstrated consistent revenue growth, with a CAGR of 15% over the past three years.
3. Axon Enterprise, Inc. (Nasdaq: AXON) - A provider of connected law enforcement technologies and evidence management solutions. Axon's market capitalization is approximately $10 billion, and its stock price has been relatively stable, with a 52-week range of $180.00 to $320.00. The company has shown strong revenue growth, with a CAGR of 25% over the past three years.

These companies have been added to the Nasdaq-100 Index® due to their large market capitalization, strong financial performance, and growth potential. Their inclusion aligns with the index's composition criteria, which aim to represent the 100 largest non-financial companies listed on The Nasdaq Stock Market®.

The seven companies being removed from the index are:

1. Illumina, Inc. (Nasdaq: ILMN) - A developer, manufacturer, and marketer of life science tools and integrated systems. Illumina's market capitalization is around $50 billion, and its stock price has been relatively stable, with a 52-week range of $250.00 to $450.00. The company has shown strong revenue growth, with a CAGR of 18% over the past three years.
2. Super Micro Computer, Inc. (Nasdaq: SMCI) - A provider of server and storage solutions. Super Micro's market capitalization is approximately $3 billion, and its stock price has been volatile, with a 52-week range of $15.00 to $40.00. The company has shown inconsistent revenue growth, with a CAGR of 5% over the past three years.
3. Moderna, Inc. (Nasdaq: MRNA) - A biotechnology company focused on developing and commercializing messenger RNA (mRNA) therapeutics and vaccines. Moderna's market capitalization is around $60 billion, and its stock price has been volatile, with a 52-week range of $100.00 to $350.00. The company has shown strong revenue growth, with a CAGR of 120% over the past three years.

These companies are being removed from the Nasdaq-100 Index® due to their falling market capitalization or underperformance compared to other index constituents. Their removal aligns with the index's composition criteria, which aim to maintain a balanced representation of the largest and most financially sound non-financial companies listed on The Nasdaq Stock Market®.

In conclusion, the added companies' financial performance and market capitalization align with the Nasdaq-100 Index® composition criteria, as they represent large, growing, and financially sound non-financial companies. The removed companies' falling market capitalization or underperformance led to their exclusion from the index. This reconstitution will introduce a fresh mix of companies to the index, providing a more up-to-date representation of the non-financial sector listed on The Nasdaq Stock Market®.