Big changes coming in Nasdaq-100 membership

Every December, Nasdaq, which operates the Nasdaq exchange and exchanges in the United States and Europe, updates its key Nasdaq-100 Index. 

The index, established in 1985, is composed of 100 of the largest non-financial companies listed on the Nasdaq Stock Market, with the key variable the market capitalizations of the component stocks.

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The index, up 29.4% in 2024 (after a 53.8% gain in 2023), is widely followed because its members include all of the top technology stocks, including Apple  (AAPL) , NVIDIA  (NVDA)  Microsoft  (MSFT) , Amazon.com  (AMZN) , Meta Platforms  (META) , Google-parent Alphabet  (GOOGL)  and  (GOOGL)  and Tesla  (TSLA) . 

Related: Analyst who correctly said Apple stock would rally updates outlook

Three stocks will be added to the index before the market open on Monday, Dec. 23. All three have seen huge gains so far in 2024 and had among the largest market capitalizations of companies that were not members of the Nasdaq-100.

The new stars of the index

Joining the index are: 

Palantir  (PLTR) , the Denver company that specializes in software for big data analysis. Co-founded by Alex Karp, Peter Thiel and others, Its original clients were the U.S. government but has expanded to work with corporate clients and others. Its Palantir Gotham product is an intelligence and defense tool used by militaries and counter-terrorism analysts.

Market capitalization: $173.3 billion.Dec. 13 stock price: $76.07, up 3.9% on the day. Year-to-date change: 343%. 

MicroStrategy  (MSTR) , based in suburban Washington, D.C., specializes in business intelligence, mobile software and cloud-based services. It also is well known as a proxy for bitcoin because of its massive holdings of the cryptocurrency.  As of Friday, according to BitBO.IO, the company had invested $23.4 billion buying 423,650 bitcoins. Average price per bitcoin: $58,219. Current value of holdings: $43.1 billion.

Market capitalization: $97.9 billion.Dec. 13 stock price: $408.67, up 4.2% on the day.Year-to-date change: 547%.

Axon Enterprise  (AAXN) , the Scottsdale, Ariz., company that develops technology and weapons for military, law enforcement and civilians. Its best-known product is the Taser, the electronic shock system.  

Market capitalization: $49.2 billion.Dec. 13 stock price: $644.91, up 1.3% on the day. Year-to-date change: 149.7%. 

TAMPA, FLORIDA – MAY 8: Signage is displayed at the Palantir Technologies’ booth at Special Operations Forces (SOF) Week in Tampa, Fla. in May.

Luke Sharrett/Getty Images

The trio leaving the Nasdaq-100

These three stocks are being removed from the index but are still listed on Nasdaq. 

Illumina  (ILMN) , the San Diego-based developer of genetic research products. 

Market capitalization: $22.8 billion.Dec. 13 stock price: $143.87, up 1.75% on the day.Year-to-date change: 6.22%.

More Wall Street Analysts:

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Super Micro Computer  (SMCI) , the maker of very high-end computers used to process artificial intelligence data. The company’s share price has been hit by ongoing concerns over the quality of its accounting and financial statements. Ernst & Young quit as the company’s auditor in October.

Market capitalization: $21.3 billion. Dec. 13 stock price: $36.45., up 3.9% on the day. Year-to-date change: -73.1%

Moderna  (MRNA) , the developer of drugs used to help prevent the Covid-19 virus. The company’s sales have fallen off as the pandemic eased.

Market capitalization: $16.1 billion.Dec. 13 stock price: $41.83, up 2.3% on the day.Year-to-date change: -57.9%.

The Nasdaq-100 is the basis of the Invesco QQQ Trust QQQ, which aims to produce results that mirror those of the index. The results are before expenses.

Nasdaq’s moves are made in advance of the quadruple witching on Dec. 20. The witching is the simultaneous expiration of four financial contracts: stock options, stock index options, stock index futures, and single-stock futures. 

The quadruple witching usually generates massive market activity in the last hour of the expiration date.

Related: Veteran fund manager delivers alarming S&P 500 forecast