Palantir, MicroStrategy, Axon Join Nasdaq 100; Moderna, Super Micro Get The Axe

The Nasdaq 100 index is set to welcome three new members, while three others will be removed, as part of its annual reconstitution. Palantir Technologies (PLTR), MicroStrategy (MSTR), and Axon Enterprise (AXON) will join the prestigious index, while Moderna (MRNA), Super Micro Computer (SMCI), and Illumina (ILMN) will be dropped.

Palantir, MicroStrategy, and Axon have been added to the Nasdaq 100 due to their significant market capitalizations and growth prospects. Palantir's market cap of $172 billion is higher than many current Nasdaq 100 members, while MicroStrategy's market cap of $82 billion reflects its status as a leveraged bitcoin play. Axon's market cap of $49.6 billion is also substantial, given its focus on conducted energy devices and digital evidence management. Their inclusion in the index is a testament to their strong growth potential and significant market presence.

The removal of Moderna and Super Micro will slightly reduce the healthcare and technology sectors' representation in the Nasdaq 100. MRNA was a significant player in the biotechnology space, while SMCI contributed to the technology hardware sector. Their departure will open opportunities for other companies to enter the index, potentially reshaping the sectoral composition. However, the overall impact on the healthcare and technology sectors is expected to be minimal, as the Nasdaq 100 remains dominated by other major players in these sectors.

The addition of Palantir, MicroStrategy, and Axon to the Nasdaq 100 is expected to introduce new dynamics to the index. Palantir's focus on AI data analytics and MicroStrategy's leveraged bitcoin play may impact the index's exposure to technology and cryptocurrency sectors. Axon's expertise in public safety technology could also contribute to the index's diversification.



In conclusion, the changes to the Nasdaq 100 index reflect the growing importance of innovative technologies and business models in the broader market. The addition of Palantir, MicroStrategy, and Axon, along with the removal of Moderna and Super Micro, will reshape the index's sectoral composition and potentially introduce new dynamics. Investors should closely monitor these changes and their impact on the index's performance.