Palantir Stock Is Joining the Nasdaq-100 Index, and Super Micro Computer Is Being Booted: What Investors Should Know

By Investor Empires On Dec 14, 2024

Palantir Technologies (NASDAQ:PLTR) Stock investors got some good news to start the weekends. Friday at 8 pm Egypt time Nasdaq (NASDAQ: NDAQ) The artificial intelligence (AI) software company has announced its addition to Nasdaq-100 index.

The move by Nasdaq – which owns and operates the stock exchange of the same name and others – is part of its annual reshaping of the Nasdaq 100 index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock market.

In 2024, Palantir stock is up 343% through December 13 vs Standard & Poor’s 50029% return. So, it’s easy to understand what a dramatic and almost identical increase in Palantir has been Market value It has dropped its place on the Nasdaq 100 index.

The timing of the news release was strategic, as 8pm ET is the time after-hours stock trading ends in the United States. I suspect Palantir stock would have gotten a boost had this news been reported during regular or after-hours trading.

Along with Palantir, the stocks added to the Nasdaq-100 index, which launched in 1985, are Accurate strategy and Exxon Corporation.

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

MicroStrategy operates as an enterprise software company, but most investors would likely view it as a price gouging Bitcoin Since the company invests money in purchasing cryptocurrency. As of December 13, 2024, MicroStrategy stock is up 547%.

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

The three stocks removed from the Nasdaq-100 specialize in server AI Super micro computer (NASDAQ: SMCI)a biotechnology focused on genomics Illuminaand biotechnology accidentknown as the manufacturer of one of the two mRNA-based COVID-19 vaccines.

Supermicro shares were up 28% through Dec. 13, 2024, but are down 69% since reaching an all-time high in March. The stock’s big drop is due in part to some of the company’s weak financial metrics. However, it mainly stems from the fallout following allegations that a known short seller tampered with accounting and other matters of concern to investors. (Short sellers are those who bet that the stock price will fall.)

Illumina stock has gained 6% so far this year, while Moderna stock is down 58%, largely due to a sharp decline in coronavirus vaccine sales.

The Nasdaq-100 reconstitution will take effect before the market opens on Monday, December 23.

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

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

Palantir stock investors have been getting a lot of good news lately. Notably, the company released an impressive third-quarter report last month, sending shares soaring more than 24% the next day.

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

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Beth McKenna He has no position in any of the stocks mentioned. 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 Disclosure policy.

Palantir Stock Joins Nasdaq-100, Super Micro Computer Launches: What Investors Should Know Originally published by The Motley Fool