Palantir Technologies (NASDAQ: PLTR) inventory buyers acquired some excellent news to start out their weekends. On Friday at 8 p.m. ET, Nasdaq (NASDAQ: NDAQ) introduced that the substitute intelligence (AI)-powered software program firm is being added to the Nasdaq-100 index.
This transfer by Nasdaq — which owns and operates its namesake inventory alternate and others — is a part of its annual reconstitution of the Nasdaq-100 index, which contains 100 of the biggest non-financial firms listed on the Nasdaq Stock Market.
In 2024, Palantir inventory has soared 343% by way of Dec. 13 versus the S&P 500‘s 29% return. So, it is easy to know how an enormous, roughly corresponding enhance in Palantir’s market cap has landed it a spot on the Nasdaq-100.
The timing of the information launch was strategic, as 8 p.m. ET is when after-hours inventory buying and selling ends within the United States. I believe Palantir inventory would have gotten a lift had this information been launched throughout both common or after-hours buying and selling.
Along with Palantir, the shares being added to the Nasdaq-100, launched in 1985, are MicroTechnique and Axon Enterprise.
Palantir is a software-as-a-service (SaaS) firm that gives AI-powered software program over the cloud. Its platforms allow its clients to make use of their information to extend operational effectiveness and effectivity. Its clients embrace businesses throughout the U.S. authorities and people of our allies and industrial clients.
MicroTechnique operates as an enterprise software program firm, however most buyers possible view it as a play on the value of Bitcoin because the firm plows cash into shopping for the cryptocurrency. As of Dec. 13, 2024, MicroTechnique inventory is up 547%.
Axon sells physique cameras and different services and products to regulation enforcement, the navy, and customers. Through Dec. 13, Axon inventory is up 150% this 12 months.
The three shares being faraway from the Nasdaq-100 are AI server specialist Super Micro Computer (NASDAQ: SMCI), genomics-focused biotech Illumina, and biotech Moderna, greatest often known as the maker of one of many two mRNA-based COVID-19 vaccines.
Shares of Supermicro are up 28% by way of Dec. 13, 2024, however they’ve plunged 69% since hitting their all-time excessive in March. The inventory’s large drop is partly because of the weakening of a few of the firm’s monetary metrics. However, it primarily stems from the fallout following a well known short-seller’s allegations of accounting manipulations and different objects of concern to buyers. (Short-sellers are those that guess on the value of a inventory declining.)
Illumina inventory has eked out a achieve of 6% to this point this 12 months, whereas Moderna inventory has plummeted 58%, largely attributable to a steep fall-off in gross sales of its COVID-19 vaccine.
The reconstitution of the Nasdaq-100 index will develop into efficient previous to the market open on Monday, Dec. 23.
A Nasdaq-100 index membership means mutual funds, exchange-traded funds (ETFs), and different monetary merchandise primarily based on this index must purchase shares of Palantir. This elevated demand ought to exert at the least some upward stress on the inventory value.
Membership in any well-known inventory index additionally will increase an organization’s visibility. Greater consciousness of Palantir will widen the pool of potential buyers in its inventory.
Palantir inventory buyers have had an abundance of excellent information just lately. Notably, the corporate launched a unbelievable third-quarter report final month, which despatched shares hovering greater than 24% the subsequent day.
In the third quarter, Palantir’s year-over-year income and adjusted earnings per share (EPS) surged 30% and 43%, respectively. Both outcomes beat Wall Street’s estimates. Moreover, administration elevated full-year 2024 steering for income, adjusted working revenue, and adjusted free money movement.
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Beth McKenna has no place in any of the shares talked about. The Motley Fool has positions in and recommends Axon Enterprise, Bitcoin, and Palantir Technologies. The Motley Fool recommends Illumina, Moderna, and Nasdaq. The Motley Fool has a disclosure coverage.
Palantir Stock Is Joining the Nasdaq-100 Index, and Super Micro Computer Is Being Booted: What Investors Should Know was initially revealed by The Motley Fool
