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Stocks to Watch | Annual NASDAQ-100 "Rebalancing" Set to Begin! Which Companies Will Enter and Exit?
NASDAQ-100 +1.60%
Palantir Technologies +6.95%
Equinix, Inc. +1.61%
MicroStrategy Incorporated Class A +3.35%
CME Group Inc. Class A +1.21%
NASDAQ-100 NDX | 0.00 | |
Palantir Technologies PLTR | 0.00 | |
Equinix, Inc. EQIX | 0.00 | |
MicroStrategy Incorporated Class A MSTR | 0.00 | |
CME Group Inc. Class A CME | 0.00 |
Next Friday, the annual reconstitution of the Nasdaq-100 Index components will be revealed.
According to the schedule for the reconstitution of the NASDAQ-100(NDX.US), the announcement date for the changes is the second Friday of December (this year, December 13th) after the market close, with the changes becoming effective on the first trading day following the third Friday of December. The reference date for the reconstitution is the last trading day of November (this year, November 29th).
As the adjustment of the Nasdaq-100 Index approaches, investor focus is turning to which companies will be added and which will be removed.
According to Barron’s, companies likely to be included in the Nasdaq-100 Index are as follows:
| Companies Likely to Be Included | Market Cap (USD) as of Dec 5th |
|---|---|
| Palantir Technologies(PLTR.US) | 163.7 Billion |
| Equinix, Inc.(EQIX.US) | 93.96 Billion |
| MicroStrategy Incorporated Class A(MSTR.US) | 90.51 Billion |
| CME Group Inc. Class A(CME.US) | 88.66 Billion |
| Coinbase Global, Inc.(COIN.US) | 80.26 Billion |
| Interactive Brokers Group, Inc. Class A(IBKR.US) | 78.97 Billion |
| Axovant Sciences Ltd(AXON.US) | 52.60 Billion |
| Nasdaq, Inc.(NDAQ.US) | 46.71 Billion |
| Arch Capital Group Ltd.(ACGL.US) | 37.06 Billion |
| DRAFTKINGS INC(DKNG.US) | 21.87 Billion |
Conversely, the 10 companies with the lowest market capitalization currently in the Nasdaq-100 Index might be excluded:
| Companies Likely to Be Excluded | Market Cap (USD) as of Dec 5th |
|---|---|
| MODERNA(MRNA.US) | 16.52 Billion |
| Illumina, Inc.(ILMN.US) | 22.19 Billion |
| Biogen Inc.(BIIB.US) | 23.21 Billion |
| CDW Corp.(CDW.US) | 23.76 Billion |
| Super Micro Computer, Inc.(SMCI.US) | 24.09 Billion |
| GlobalFoundries(GFS.US) | 24.42 Billion |
| MONGODB(MDB.US) | 24.70 Billion |
| Warner Bros Discovery(WBD.US) | 26.20 Billion |
| ON Semiconductor Corporation(ON.US) | 27.99 Billion |
| DexCom, Inc.(DXCM.US) | 30.83 Billion |
Screening criteria: The potential companies for inclusion are the top 10 largest companies by market capitalization that are not currently part of the NASDAQ-100 index; those likely to be excluded are the 10 smallest companies by market capitalization currently in the NASDAQ-100 index.
Notably, Palantir Technologies(PLTR.US) has been one of the standout stocks this year. The company recently announced that it would transfer its listing from the New York Stock Exchange to Nasdaq on November 26, while continuing to trade under the ticker “PLTR.” Palantir is expected to qualify for inclusion in the Nasdaq-100 Index, a move that could enhance its visibility and attract new investors.
Super Micro Computer, Inc.(SMCI.US), a major AI server manufacturer, fell into an accounting fraud scandal after joining the Nasdaq-100 Index in July, causing its market cap to plunge. However, the stock has recently rebounded significantly after the company successfully appointed a new accounting firm and an internal control investigation found no misconduct by the management.