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Palantir, MicroStrategy, Axon Enter Nasdaq 100; Moderna, Super Micro Out

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Business Honor
16 December, 2024

Palantir, MicroStrategy, and Axon Enterprise join Nasdaq 100; Moderna, Super Micro, Illumina removed.

Palantir Technologies (PLTR), MicroStrategy (MSTR), and Axon Enterprise (AXON), three of the hottest stocks of 2024, will join the exclusive Nasdaq 100 index before the market opens on December 23, Nasdaq Inc. announced late Friday. This rebalancing marks a milestone for these companies, which have grown by leaps and bounds this year.

Palantir, the leader in artificial intelligence and data analytics, is the Nasdaq 100 candidate that many had looked forward to when it recently shifted its listing from the New York Stock Exchange to the Nasdaq Composite. With a market cap of $173 billion, Palantir has risen by 343% to 2024, making this stock the highest performer during this year of the S&P 500. Shares rose 3% early Sunday night on Robinhood.

The company, which has grown more dependent on Bitcoin investments as its software business has continued to decline, has had its market cap balloon to $82.8 billion, as its stock price surged 547% this year. MicroStrategy's stock was up 6% on Robinhood amid a new high in Bitcoin. Despite having a money-losing software business, the company's strong holdings in Bitcoin have helped it become part of the Nasdaq 100.

Axon Enterprise, maker of Taser weapons, body cameras, and digital storage for law enforcement, has also seen tremendous growth, up nearly 150% in 2024. The company's stock was forecasted to increase 5% on Robinhood after the news.

However, some constituents are being dropped as new are added. Moderna (MRNA), Super Micro Computer (SMCI), and Illumina (ILMN) will be removed from the index. Moderna has significantly dropped in 2024. Super Micro has been dealing with accounting issues. Illumina has fallen for the last two years, since 2021.

These changes to the Nasdaq 100 index will affect mutual funds and ETFs that track this index, but the trading volume associated with these changes is smaller than for the S&P 500. Both Axon and Palantir appear on the IBD 50, while Axon is also on the IBD Leaderboard.