Palantir Technologies (PLTR) is set to join the Nasdaq-100 index effective December 23, alongside MicroStrategy (MSTR) and Axon Enterprise (AXON). The addition of these companies comes with the removal of Super Micro Computer (SMCI), Illumina (ILMN), and Moderna (MRNA).
The move is expected to boost demand for Palantir’s stock, contributing to its already impressive 343% year-to-date gain. The company’s recent strong quarterly report and increased guidance have driven up its visibility among investors.
Palantir’s AI-powered software will provide operational effectiveness and efficiency to its customers, including U.S. government agencies and allies. MicroStrategy focuses on enterprise software, while Axon sells body cameras and products to law enforcement and consumers. The stocks of Supermicro, Illumina, and Moderna have experienced varying levels of growth this year.
The addition to the Nasdaq-100 index is expected to increase Palantir’s market cap, attracting mutual funds, ETFs, and other financial products that track the index. This will exert upward pressure on Palantir’s stock price and enhance its visibility among investors.
Palantir has already seen significant gains in recent weeks, including a 24% surge after its third-quarter report showed strong revenue and adjusted earnings growth. The company has increased full-year guidance for revenue, operating profit, and free cash flow.
Investors considering Palantir Technologies should be aware that it was not recommended by The Motley Fool’s Stock Advisor team, which identified other stocks as better investment opportunities.
Source: https://finance.yahoo.com/news/palantir-stock-joining-nasdaq-100-170000662.html