Next week's adjustment of Nasdaq Composite Index constituents is highly anticipated: popular stocks such as Palantir, MicroStrategy, and Coinbase may be included

Next Friday (December 13), the Nasdaq 100 Index will announce the results of its annual component stock adjustments, with popular stocks such as Palantir, MSTR, and Coinbase expected to be included.

The inclusion of these potential new members will not only bring new vitality to the Nasdaq index but may also lead to significant price increases for related stocks due to passive buying by index fund and ETF managers, attracting high attention from global investors.

Nasdaq 100 Index Component Stock Adjustments Draw Attention Next Week

Market analysis shows that leading companies by market capitalization, such as Palantir Technologies, MicroStrategy, Equinix, CME Group, Interactive Brokers, and Coinbase Global, are expected to be included.

It is noteworthy that the data analytics company Palantir transitioned from the New York Stock Exchange to Nasdaq on November 26, a move widely interpreted by the market as a strategic layout to secure inclusion in the index. The company's market capitalization reached $152 billion on November 29 (the adjustment evaluation date).

Being included in the Nasdaq 100 Index will have a significant impact on the listed companies. Although the scale of ETFs and index products based on the Nasdaq index is not as large as that of the S&P 500 index, its market influence cannot be ignored—once a company is included in the index, it often leads to considerable stock price increases due to passive buying by index fund and ETF managers.

Unlike the S&P 500 Index, which uses multi-dimensional evaluation criteria such as market capitalization, profitability, and industry classification, the Nasdaq index's component stock adjustments primarily focus on market capitalization performance.

Currently, the component stocks with the lowest market capitalization in the index range from $16.6 billion to $23.8 billion, accounting for less than 0.1% of the total market capitalization of the index, and these companies face the risk of being removed. In last December's annual adjustment, a total of 7 companies were added, while 7 companies were removed from the index.

Additionally, Nasdaq index component stock adjustments are not limited to once a year. In November this year, AppLovin, as the largest non-index component stock by market capitalization on Nasdaq, successfully entered the index by temporarily replacing Dollar Tree.

This annual adjustment will be announced on December 13, and whether these potential new members will be successfully included will be revealed next week. Given the Nasdaq index's important position in global technology stocks, the results of this adjustment will be closely watched by global investors