Investors are keeping a close eye on three major stocks that are set to join the prestigious Nasdaq 100 index next week. The upcoming reconstitution, which will take effect before the market opens on December 23, has already fueled notable premarket action in these companies. Palantir Technologies (PLTR), MicroStrategy (MSTR), and Axon Enterprise (AXON) are the latest additions to the tech-heavy index, following impressive gains in 2024 that have positioned them as non-financial companies with some of the highest market values in the Nasdaq Composite.
Lets have a look on the three stocks that will be part of the Nasdaq 100 index:
Palantir Technologies (ticker: PLTR)
Palantir Technologies, a leader in data analytics and software development, has seen its stock drop 1.3% ahead of Monday’s market opening. Despite the dip, this news were likely priced on the stock price, the company’s inclusion in the Nasdaq 100 comes after an exceptional year, with its stock surging 317% in the last year. Palantir, known for its work with government agencies and large corporations, has been increasingly focused on expanding its commercial business. Investors are optimistic about the company’s future as it continues to grow and broaden its software offerings in data intelligence.
MicroStrategy (ticker: MSTR)
MicroStrategy, once solely recognized as a business intelligence company, has become a key player in the world of cryptocurrency thanks to its large Bitcoin holdings. Ahead of the Nasdaq 100 reconstitution, the company saw its stock jump 5.8%. This rally likely stems from the latest surge in Bitcoin prices, which hit an all-time high of over $106,000 early Monday. As the largest corporate holder of Bitcoin, MicroStrategy’s fortunes are closely tied to the cryptocurrency’s performance. The company continues to fund its Bitcoin acquisitions through share sales and convertible bonds, making it a unique blend of traditional tech and digital asset investment. The strong rally in Bitcoin has further solidified investor confidence in MicroStrategy, reflecting its growing prominence in both the tech and cryptocurrency sectors.
Axon Enterprise (ticker: AXON)
Axon Enterprise, the manufacturer of Taser stun guns and provider of law enforcement software, saw a premarket gain of 2.8%. The company’s steady growth in both hardware and software solutions for law enforcement has made it a significant player in the public safety industry. Axon’s strong earnings and market performance this year have earned it a spot in the Nasdaq 100, signaling increased investor confidence in its long-term growth prospects. The company’s expansion into body cameras, evidence management software, and other security technologies has helped Axon solidify its place in the growing public safety sector.
Nasdaq 100 Reconstitution: What It Means for Investors
The addition of Palantir, MicroStrategy, and Axon to the Nasdaq 100 is part of the index’s annual reconstitution, where changes are made to reflect the market’s evolving landscape. This year’s reconstitution will see these three companies replace Moderna, Super Micro Computer, and Illumina, all of which have seen declining stock prices. Moderna, known for its COVID-19 vaccine, dropped 0.5%, while Super Micro and Illumina saw sharper declines of 11.8% and 1.2%, respectively at the time of writing. The reshuffling of the index highlights the continued evolution of the tech sector, with more diverse companies like Palantir and MicroStrategy gaining traction alongside traditional tech firms.
Why Investors Should Pay Attention
The reshuffling of the Nasdaq 100 presents a significant opportunity for investors. The inclusion of Palantir, MicroStrategy, and Axon underscores the increasing importance of data analytics, digital currencies, and public safety technologies in today’s economy. As the Nasdaq 100 is a benchmark index for many investors and funds, the reconstitution is often seen as a key event in the market calendar. The changes reflect shifts in market dynamics and could influence stock performance in the months to come.
With each of these companies having achieved triple-digit gains in 2024, investors are betting on their continued success. As the Nasdaq 100 evolves, these stocks are well-positioned to benefit from growing investor interest and broader market trends. Whether you are an active trader or a long-term investor, keeping an eye on these three stocks could provide valuable insight into the future direction of the technology and digital asset sectors.
As the Nasdaq 100 reconstitution takes place, the addition of Palantir Technologies, MicroStrategy, and Axon Enterprise highlights the shifting landscape of the tech market. These companies have demonstrated strong performance in 2024 and are now poised to join one of the most prestigious indexes in the world. With Bitcoin’s surge benefiting MicroStrategy and Axon’s growing role in law enforcement technology, these stocks are worth monitoring as they make their debut in the Nasdaq 100 next week
