Nasdaq 100 has been rebalanced with PLTR and MSTR

Palantir Technologies (PLTR), MicroStrategy (MSTR), and Axon Enterprise (AXON)—three of the standout stocks of 2024—are set to join the Nasdaq 100 index on Dec. 23, Nasdaq Inc. announced late Friday.

Exiting the index are Moderna (MRNA), Super Micro Computer (SMCI), and Illumina (ILMN), which rank among the smallest members of the Nasdaq 100. Moderna has seen its stock tumble throughout 2024, while Super Micro has plummeted from its March peak due to significant accounting concerns. Illumina, although up slightly this year, has been on a downtrend since early 2021.

In response to the Nasdaq 100 rebalancing news, SMCI stock dropped sharply late Friday, following a Bloomberg report that the company has enlisted Evercore to assist in raising capital.

The Nasdaq 100 represents the 100 largest non-financial companies and is dominated by tech giants known as the Magnificent Seven: Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), and Tesla (TSLA).

New Nasdaq 100 Entrants:

• Palantir Technologies: Known for its AI-driven data analytics, Palantir recently switched its listing from the New York Stock Exchange to the Nasdaq in November. Its market cap of $173 billion surpasses many current Nasdaq 100 members.
• MicroStrategy: While primarily a software company, MicroStrategy is viewed as a leveraged play on Bitcoin, having used stock and debt sales to acquire significant cryptocurrency holdings. Its market cap stands at $82.8 billion.
• Axon Enterprise: The maker of Taser weapons, body cameras, and digital storage solutions for law enforcement, Axon has surged nearly 150% in 2024.

The rebalancing will prompt mutual funds and ETFs tied to the Nasdaq 100 to adjust their holdings, although the financial impact is smaller compared to changes in the S&P 500 index.

Axon stock is listed on the IBD Leaderboard, while both Palantir and Axon appear on the IBD 50.