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Nasdaq-100 Reconstitution: Six Stocks Join the Club, Six Get the Boot

MarketDash Editorial Team
7 hours ago
The Nasdaq-100 just revealed its annual membership changes, with six companies earning a spot and six getting removed starting December 22. The shakeup reflects the AI storage boom and pharmaceutical breakthroughs, while some retail darlings fall by the wayside.

The Nasdaq-100 just completed its annual roster review, and the results tell an interesting story about where the market is headed. Six companies are getting promoted to the prestigious index, six are getting kicked out, and all of these changes take effect on December 22.

If you're wondering why this matters, index changes aren't just ceremonial. They trigger real money flows as index funds rebalance their portfolios to match the new composition. That can create some serious trading action.

Who's In

The six companies joining the Nasdaq-100 are an eclectic mix. There's Alnylam Pharmaceuticals, Inc. (ALNY), Ferrovial SE (FER), Insmed Inc. (INSM), Monolithic Power Systems, Inc. (MPWR), Seagate Technology Holdings plc (STX), and Western Digital Corp. (WDC).

Meanwhile, six companies are getting the axe: Biogen Inc. (BIIB), CDW Corporation (CDW), GlobalFoundries Inc. (GFS), Lululemon Athletica Inc. (LULU), ON Semiconductor Corporation (ON), and The Trade Desk, Inc. (TTD).

The AI Storage Gold Rush

Two of the most notable additions are Seagate Technology Holdings and Western Digital Corp., which have been riding the artificial intelligence wave to spectacular gains. When everyone's building massive data centers to train AI models, you need somewhere to store all that information. That's where these storage companies come in.

The numbers tell the story pretty clearly. Seagate's stock has rocketed 232.96% year-to-date, while Western Digital's has climbed an even more impressive 277.04%, according to market data. That's the kind of performance that gets you noticed by the Nasdaq-100 selection committee.

A Pharmaceutical Comeback Story

Alnylam Pharmaceuticals is another fascinating addition. This isn't a company that's been quietly grinding higher. They've executed a dramatic turnaround that's hard to ignore. In the third quarter, Alnylam reported adjusted earnings of $2.90 per share, which is particularly impressive considering they posted a 50-cent loss in the same quarter a year ago.

Revenue growth has been even more striking. Quarterly sales surged 149% year over year to $1.25 billion, crushing the consensus estimate of $977.79 million. The stock has jumped 70.17% year-to-date, and now the company gets to join one of the most watched indexes in the world.

Walmart's Terrible Timing

Here's an interesting subplot: Walmart (WMT) recently switched its listing from the New York Stock Exchange to Nasdaq, which would normally make it eligible for the Nasdaq-100. But timing is everything, and Walmart's timing was awful. The retail giant made the switch too late to qualify for this year's annual reconstitution, missing the deadline for inclusion in the tech-heavy index.

It's a bit like showing up to a party right after they stopped letting people in. Walmart will have to wait for the next opportunity to join the club.

Lululemon's Rough Year

On the removal side, Lululemon is probably the most surprising name. The athletic apparel company has had a brutal year, with the stock plunging 44.95% year-to-date. That kind of decline will get you removed from pretty much any index.

The irony is that Lululemon actually posted a solid third-quarter earnings beat and raised its full-year forecast, which should have calmed concerns about weak North American sales. Despite a 2% dip in Americas revenue, the company showed strong international growth, with revenue up 33% and comparable sales rising 18%. Sometimes the market just isn't in a forgiving mood.

Broader Index Shuffle

This Nasdaq-100 reconstitution comes just days after the S&P 500 completed its own quarterly rebalance. Carvana (CVNA) is joining the S&P 500, along with CRH Plc (CRH) and Comfort Systems USA (FIX). Meanwhile, LKQ Corp (LKQ), Solstice Advanced Materials (SOLS), and Mohawk Industries (MHK) are getting removed from that index.

It's reshuffling season in the index world, and that means lots of portfolio managers are scrambling to adjust their holdings. For the companies being added, it's validation and a guaranteed boost in demand. For those being removed, it's a reminder that nothing in the market is permanent.

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Nasdaq-100 Reconstitution: Six Stocks Join the Club, Six Get the Boot

MarketDash Editorial Team
7 hours ago
The Nasdaq-100 just revealed its annual membership changes, with six companies earning a spot and six getting removed starting December 22. The shakeup reflects the AI storage boom and pharmaceutical breakthroughs, while some retail darlings fall by the wayside.

The Nasdaq-100 just completed its annual roster review, and the results tell an interesting story about where the market is headed. Six companies are getting promoted to the prestigious index, six are getting kicked out, and all of these changes take effect on December 22.

If you're wondering why this matters, index changes aren't just ceremonial. They trigger real money flows as index funds rebalance their portfolios to match the new composition. That can create some serious trading action.

Who's In

The six companies joining the Nasdaq-100 are an eclectic mix. There's Alnylam Pharmaceuticals, Inc. (ALNY), Ferrovial SE (FER), Insmed Inc. (INSM), Monolithic Power Systems, Inc. (MPWR), Seagate Technology Holdings plc (STX), and Western Digital Corp. (WDC).

Meanwhile, six companies are getting the axe: Biogen Inc. (BIIB), CDW Corporation (CDW), GlobalFoundries Inc. (GFS), Lululemon Athletica Inc. (LULU), ON Semiconductor Corporation (ON), and The Trade Desk, Inc. (TTD).

The AI Storage Gold Rush

Two of the most notable additions are Seagate Technology Holdings and Western Digital Corp., which have been riding the artificial intelligence wave to spectacular gains. When everyone's building massive data centers to train AI models, you need somewhere to store all that information. That's where these storage companies come in.

The numbers tell the story pretty clearly. Seagate's stock has rocketed 232.96% year-to-date, while Western Digital's has climbed an even more impressive 277.04%, according to market data. That's the kind of performance that gets you noticed by the Nasdaq-100 selection committee.

A Pharmaceutical Comeback Story

Alnylam Pharmaceuticals is another fascinating addition. This isn't a company that's been quietly grinding higher. They've executed a dramatic turnaround that's hard to ignore. In the third quarter, Alnylam reported adjusted earnings of $2.90 per share, which is particularly impressive considering they posted a 50-cent loss in the same quarter a year ago.

Revenue growth has been even more striking. Quarterly sales surged 149% year over year to $1.25 billion, crushing the consensus estimate of $977.79 million. The stock has jumped 70.17% year-to-date, and now the company gets to join one of the most watched indexes in the world.

Walmart's Terrible Timing

Here's an interesting subplot: Walmart (WMT) recently switched its listing from the New York Stock Exchange to Nasdaq, which would normally make it eligible for the Nasdaq-100. But timing is everything, and Walmart's timing was awful. The retail giant made the switch too late to qualify for this year's annual reconstitution, missing the deadline for inclusion in the tech-heavy index.

It's a bit like showing up to a party right after they stopped letting people in. Walmart will have to wait for the next opportunity to join the club.

Lululemon's Rough Year

On the removal side, Lululemon is probably the most surprising name. The athletic apparel company has had a brutal year, with the stock plunging 44.95% year-to-date. That kind of decline will get you removed from pretty much any index.

The irony is that Lululemon actually posted a solid third-quarter earnings beat and raised its full-year forecast, which should have calmed concerns about weak North American sales. Despite a 2% dip in Americas revenue, the company showed strong international growth, with revenue up 33% and comparable sales rising 18%. Sometimes the market just isn't in a forgiving mood.

Broader Index Shuffle

This Nasdaq-100 reconstitution comes just days after the S&P 500 completed its own quarterly rebalance. Carvana (CVNA) is joining the S&P 500, along with CRH Plc (CRH) and Comfort Systems USA (FIX). Meanwhile, LKQ Corp (LKQ), Solstice Advanced Materials (SOLS), and Mohawk Industries (MHK) are getting removed from that index.

It's reshuffling season in the index world, and that means lots of portfolio managers are scrambling to adjust their holdings. For the companies being added, it's validation and a guaranteed boost in demand. For those being removed, it's a reminder that nothing in the market is permanent.

    Nasdaq-100 Reconstitution: Six Stocks Join the Club, Six Get the Boot - MarketDash News