Palantir Stock Falls, MicroStrategy Rises on Nasdaq 100 Addition News

Palantir Stock Falls, MicroStrategy Rises on Nasdaq 100 Addition News

Key insights

  • Shares of Palantir fell on Monday, while MicroStrategy rose following news on Friday that the company will join the Nasdaq 100 index on Monday, December 23, along with Axon Enterprise.
  • The index, which includes the 100 largest non-financial companies in the Nasdaq Composite Index, is reconstituted annually.
  • The additions will replace Super Micro Computer, Moderna and Illumina.

Shares of Palantir Technologies (PLTR) fell Monday while MicroStrategy (MSTR) rose after news late Friday that the companies will be added to the Nasdaq 100 Index next week.

Axon Enterprise (AXON) will also be added to the index before trading begins on December 23rd. The trio will replace Super Micro Computer (SMCI), Moderna (MRNA) and Illumina (ILMN), Nasdaq said Friday.

Software maker Palantir fell about 4% on Monday morning, while major Bitcoin holder MicroStrategy gained 4%. Taser maker Axon fell almost 2%. Supermicro slipped nearly 7%, while Moderna gained less than 1% and Illumina rose 1.5%. (MicroStrategy may also be trading higher due to its recent large Bitcoin purchase.)

The Nasdaq 100, which includes the 100 largest non-financial companies in the Nasdaq Composite Index, is reconstituted annually in December and rebalanced quarterly to weight its constituents by market capitalization.

Among the companies being delisted, Supermicro could be delisted from the Nasdaq entirely if it fails to file its delayed annual report by the February deadline. The server manufacturer has also hired a consulting firm to help raise capital. Bloomberg reported on Friday.

correction: The changes to the Nasdaq 100 will take place on December 23rd. An earlier version of this article incorrectly stated that they would come into effect today.

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