Palantir Stock Adds to Nasdaq 100 Index and Super Micro Computer Launches: What Investors Should Know

Palantir Technologies (PLTR 3.92%) Stock investors received good news at the start of the weekend. On Friday at 8:00 p.m. ET, Nasdaq (NDAQ -0.93%) announced that the artificial intelligence (AI)-based software company will be added to the Nasdaq-100 Index.

This move by Nasdaq – the owner and operator of the exchange of the same name and other exchanges – is part of the annual reconstitution of the Nasdaq 100 index, which includes 100 of the largest non-financial companies listed on the Nasdaq exchange.

In 2024, Palantir stock is up 343% year over year through December 13th S&P 500The return is 29%. So it’s easy to understand how a huge, roughly equivalent increase in market capitalization led Palantir to a spot on the Nasdaq-100.

The timing of the press release was strategic as stock trading in the United States ends at 8:00 p.m. ET. I suspect that Palantir stock would have seen a boost if this news had been released during regular trading or after-hours trading.

Which stocks will be added or removed from the Nasdaq-100?

Along with Palantir, these are the stocks that will be added to the Nasdaq-100, which was introduced in 1985 Microstrategy And Axon Enterprise.

Palantir is a Software-as-a-Service (SaaS) company that delivers AI-powered software via the cloud. Its platforms enable its customers to leverage their data to increase operational effectiveness and efficiency. Its customers include agencies within the U.S. government as well as those of our allies and commercial customers.

MicroStrategy operates as an enterprise software company, but most investors probably view it as a price play Bitcoin as the company puts money into purchasing the cryptocurrency. As of December 13, 2024, MicroStrategy shares are up 547%.

Axon sells body cameras and other products and services to law enforcement, the military and consumers. As of December 13, Axon shares are up 150% this year.

The three stocks being removed from the Nasdaq-100 are AI server specialists Super microcomputer (SMCI -3.90%)Genomics-focused biotechnology Illuminaand biotechnology Modernabest known as the manufacturer of one of the two mRNA-based COVID-19 vaccines.

Supermicro shares are up 28% through December 13, 2024, but have fallen 69% since hitting their all-time high in March. The stock’s sharp decline is partly due to the weakening of some of the company’s financial metrics. However, this is largely due to the fallout from a well-known short seller’s allegations of accounting manipulation and other issues of concern to investors. (Short sellers are those who bet that a stock’s price will fall.)

Illumina shares have gained 6% so far this year, while Moderna shares have plunged 58%, largely due to a sharp decline in sales of its COVID-19 vaccine.

When will Palantir stock be added to the Nasdaq 100 index?

The reconstitution of the Nasdaq 100 Index will take effect before market open on Monday, December 23rd.

How does being listed on the Nasdaq-100 benefit Palantir and its shareholders?

Membership in the Nasdaq 100 index means that mutual funds, exchange traded funds (ETFs) and other financial products based on this index must purchase shares of Palantir. This increased demand should put at least some upward pressure on the stock price.

Membership in a well-known stock index also increases a company’s visibility. Greater awareness of Palantir will expand the pool of potential investors in its stock.

There continues to be good news for Palantir stock investors

Palantir stock investors have received a wealth of good news lately. Notably, the company released a fantastic third-quarter report last month that sent shares soaring more than 24% the next day.

In the third quarter, Palantir’s revenue and adjusted earnings per share (EPS) increased 30% and 43%, respectively, year-over-year. Both results beat Wall Street estimates. In addition, management increased guidance for full-year 2024 revenue, adjusted operating income and adjusted free cash flow.