MicroStrategy Added to Nasdaq 100 Index in Annual Reshuffle
MicroStrategy (MSTR) is joining the prestigious Nasdaq 100 Index alongside Palantir (PLTR) and Axon Enterprise (AXON), as part of the index's annual December reconstitution. The changes will take effect on Monday, December 23.
The three companies will replace Super Micro Computer (SMCI), Moderna (MRNA), and Illumina (ILMN) in the index, which tracks the 100 largest non-financial companies listed on the Nasdaq stock exchange.
The announcement comes during a notable week for the Nasdaq 100, which surpassed 20,000 points for the first time in its history. The milestone reflects strong performance in technology stocks, buoyed by positive inflation data and expectations of Federal Reserve rate cuts.
MicroStrategy's remarkable stock performance follows a notable year for the company, with its stock price rising substantially alongside bitcoin's value. The company has positioned itself as a major corporate holder of bitcoin, aligning with potential cryptocurrency-friendly policies under the incoming administration.
The Nasdaq 100 undergoes yearly reconstitution in December and quarterly rebalancing to maintain appropriate market capitalization weightings among its constituents. This process helps keep the index representative of the largest companies trading on the Nasdaq exchange.
The index changes reflect broader shifts in market leadership, with companies focused on emerging technologies like artificial intelligence and digital assets gaining prominence in major market benchmarks.