Unlike the s&p 500, which evaluates standards using multiple dimensions such as market cap, profitability, and industry classification, the nasdaq focuses mainly on market cap performance.
Next Friday (December 13),$NASDAQ 100 Index (.NDX.US)$the annual component stock adjustment results will be announced,$Palantir (PLTR.US)$、 $MicroStrategy (MSTR.US)$ 、$Coinbase (COIN.US)$and other popular stocks are expected to be included.
The inclusion of these potential new members will not only bring new vitality to the nasdaq index but may also lead to significant price increases for related stocks due to passive buying by index fund and etf managers, attracting high attention from global investors.
The adjustment of the nasdaq index components next week is highly anticipated.
Market analysis shows, $Palantir (PLTR.US)$、$MicroStrategy (MSTR.US)$、 $Equinix Inc (EQIX.US)$ 、$CME Group (CME.US)$、$Interactive Brokers (IBKR.US)$and $Coinbase (COIN.US)$ Leading companies in market cap are expected to be selected.
It is worth noting that the data analytics company palantir transferred from the nyse to the nasdaq on November 26, which is widely interpreted by the market as an important strategic move to strive for inclusion in the nasdaq index; the company's market cap reached 152 billion USD on November 29 (adjustment evaluation date).
Being included in the nasdaq 100 index will have a significant impact on the listed company. Although the scale of etf and index products based on the nasdaq index is smaller than that of the s&p 500 index, its market influence cannot be ignored—once a company is included in the index, it often leads to considerable stock price increases due to passive buying by index fund and etf managers.
Unlike the s&p 500 index, which uses multidimensional evaluation criteria such as market cap, profitability, and industry classification, the constituents of the Nasdaq index are primarily adjusted based on market cap performance.
Currently, the market cap of the components with the lowest value in the index ranges between 16.6 billion and 23.8 billion dollars, accounting for less than 0.1% of the index's total market cap, and these companies face the risk of being removed. In last December's annual adjustment, a total of 7 companies were added, while 7 companies were removed from the index.
In addition, the nasdaq component stock adjustment is not limited to once a year. This November, as the largest non-index component stock in terms of market cap on nasdaq,$Applovin (APP.US)$successfully entered the nasdaq through a temporary substitution$Dollar Tree (DLTR.US)$.
The annual adjustment will be announced on December 13, and whether these potential new members will be successfully included will be revealed next week. Considering the important position of the nasdaq in the global technology stocks, the results of this adjustment will be closely watched by global investors.
Editor/Rocky