DoorDash Inc. is set to join the Nasdaq 100 Index, marking a significant inclusion, while Zoom Video Communications faces removal in the annual reshuffling of the tech-heavy benchmark. The adjustments also see Splunk Inc., MongoDB Inc., Roper Technologies Inc., CDW Corp., and Coca-Cola Europacific Partners Plc joining the index. Simultaneously, Align Technology Inc., eBay Inc., Enphase Energy Inc., JD.com Inc., and Lucid Group Inc. will be removed from the Nasdaq 100.
These modifications are slated to take effect before the market opens on Monday, December 18.
The Nasdaq 100 comprises the largest non-financial entities listed on the Nasdaq stock exchange. While there is no specific market capitalization requirement for inclusion, eligible stocks must have an average daily trading volume of at least 200,000 shares, among other criteria.
Inclusion in the Nasdaq 100 can offer various advantages to a company, including increased equity trading liquidity, a lower cost of capital, and heightened visibility among investors. Securing a spot in this esteemed index enhances a firm’s investor profile, contributing to improved trading liquidity—factors that can potentially drive the company’s stock price higher.
The Nasdaq 100’s 47% surge this year, buoyed by mega-cap technology shares, underscores its outperformance compared to the 20% gain in the S&P 500 Index and the 9.4% rise in the Dow Jones Industrial Average.
