Nasdaq announced its annual reconstitution of the Nasdaq-100 Index on Friday, with three companies set to join the index.
Palantir Technologies (NASDAQ: PLTR), MicroStrategy (NASDAQ: MSTR), and Axon Enterprise (NASDAQ: AXON) will be added before the market opens on December 23, 2024.
The move will see Illumina (NASDAQ: ILMN), Super Micro Computer (NASDAQ: SMCI), and Moderna (NASDAQ: MRNA) all removed from the Index.
Nasdaq said that the addition of Palantir Technologies, MicroStrategy, and Axon Enterprise to the Nasdaq-100 Index, enhances the index's representation of significant technology and innovation sectors.
The changes had been widely anticipated as the reconstitution adds companies with the highest market values in the Nasdaq Composite index, not already in the Nasdaq 100, and takes out companies with the lowest market values.
Palantir shifted to the Nasdaq from the NYSE in November to be eligible for inclusion in the Nasdaq 100 at the reconstitution.
The Nasdaq 100 is made up of the 100 largest non-financial companies in the Nasdaq and includes stocks like Apple and Microsoft.
Last year, seven companies were added and dropped in conjunction with the reconstitution, with the reconstitution occurring annually in December.
The Nasdaq-100 Index, launched in January 1985 and includes 100 of the largest non-financial companies listed on The Nasdaq Stock Market.