As December dawns upon us, Nasdaq gears up to unveil its latest Nasdaq-100 Index update, a momentous event that sets the financial world abuzz. This iconic index, established in 1985, showcases the 100 largest non-financial companies listed on the Nasdaq Stock Market, with market capitalizations serving as the primary determining factor. An intricate dance of stock values and corporate giants, this index is a vital barometer for tech enthusiasts and investors alike, boasting big names such as Apple, NVIDIA, Microsoft, Amazon, Meta Platforms, Google-parent Alphabet, and Tesla among its members.
Excitement brews as Nasdaq prepares to welcome three new luminaries to its prestigious Nasdaq-100 club, slated to debut on Monday, December 23. These rising stars have shown commendable growth throughout 2024 and possess substantial market capitalizations, securing their spot among the elite. Let’s delve into what sets these newcomers apart:
- Palantir (PLTR) – Hailing from Denver, this company specializes in cutting-edge software for big data analysis, catering initially to the U.S. government and expanding its outreach to corporate and other clients over time. With its flagship Palantir Gotham product offering innovative intelligence and defense solutions, Palantir boasts a market capitalization of $173.3 billion and has witnessed a tremendous 343% year-to-date change.
- MicroStrategy (MSTR) – Nestled in suburban Washington, D.C., this company stands out for its expertise in business intelligence, mobile software, and cloud-based services, earning further recognition as a significant player in the cryptocurrency realm due to its massive bitcoin holdings. With a market capitalization of $97.9 billion and a stellar year-to-date change of 547%, MicroStrategy is a force to be reckoned with.
- Axon Enterprise (AAXN) – Based in Scottsdale, Arizona, Axon Enterprise is synonymous with cutting-edge technology and weaponry catering to military, law enforcement, and civilian sectors, most notably recognized for its Taser electronic shock system. Boasting a market capitalization of $49.2 billion and showcasing a 149.7% year-to-date change, Axon Enterprise stands firm as a technological innovator in its domain.
Sadly, as new entities step into the limelight, others must bid adieu to the Nasdaq-100 index. The following three stalwarts, though departing the index, continue to navigate the financial world with prowess:
- Illumina (ILMN) – This San Diego-based company, specializing in genetic research products, commands a market capitalization of $22.8 billion, showcasing a modest year-to-date change of 6.22%.
- Super Micro Computer (SMCI) – Renowned for its high-end computers tailored for artificial intelligence data processing, this company has faced scrutiny over its accounting practices and financial standing. With a market capitalization of $21.3 billion and a year-to-date change of -73.1%, Super Micro Computer has remained steadfast in a challenging landscape.
- Moderna (MRNA) – A vital player in the fight against the Covid-19 pandemic, this drug developer has witnessed a decline in sales as the pandemic subsides. Sporting a market capitalization of $16.1 billion and a year-to-date change of -57.9%, Moderna continues to navigate the shifting tides of the pharmaceutical arena.
As Nasdaq orchestrates these dynamic shifts in its Nasdaq-100 index, investors keep a keen eye on the upcoming quadruple witching on December 20, a whirlwind event that sparks frenzied market activity with the simultaneous expiration of stock options, stock index options, stock index futures, and single-stock futures. Amidst this buzzing financial ecosystem, the Nasdaq-100 index serves as the cornerstone for the Invesco QQQ Trust QQQ, aiming to mirror the index results and pave the way for lucrative investments with calculated precision.
The show goes on, the stocks dance, and the market pulses with anticipation and excitement as Nasdaq’s latest moves shape the financial landscape, guiding investors on a path strewn with risk and reward in equal measure. Let us embrace this profound transformation with a steadfast heart, eyes glued to the horizon of ever-evolving markets, ready to seize the opportunities that lie ahead.
