Rivian, Warner Bros. Discovery to Be Added to Nasdaq 100




  • In Business
  • 2022-12-10 01:10:00Z
  • By Bloomberg

(Bloomberg) -- Rivian Automotive Inc. and Warner Bros. Discovery Inc. will be joining the Nasdaq 100 Index as part of its annual rebalancing, which adjusts the tech-heavy benchmark's composition for changes in market capitalization.

Most Read from Bloomberg

  • Putin Says Russia May Add Nuclear First Strike to Strategy

  • Harry and Meghan Throw the Gauntlet to William and Kate

  • Celine Dion Brings Attention to Stiff Person Syndrome: Here's What It Is

  • Stocks Suffer Late-Day Swoon as Traders Shun Risk: Markets Wrap

  • The Harry and Meghan Show Is a Royal Knockout

CoStar Group Inc., GlobalFoundries Inc., Baker Hughes Co., and Diamondback Energy Inc. will also be added to the index, according to a press release from Nasdaq. VeriSign Inc., Skyworks Solutions Inc., Splunk Inc., Baidu Inc., Match Group Inc., DocuSign Inc. and NetEase Inc. will be removed from the Nasdaq 100.

The changes will effective before the start of trading on Dec. 19.

"The Nasdaq 100 will continued to be dominated by mega tech," according to Patrick Mohr, global index and microstructure analyst at Instinet, an institutional broker. "This is just a process that the index goes through to clean out the dogs that have underperformed dramatically. If their market cap was really low, they may have been deemed not appropriate for the index anymore and new names were brought in."

The Nasdaq 100, which currently has 102 members, is comprised of the largest non-financial companies listed on the Nasdaq stock exchange. There is no minimum market capitalization requirement to be eligible for inclusion, but stocks must have an average daily trading volume of at least 200,000 shares, among other criteria, to be listed.

Joining the index can benefit a company by providing increased equity trading liquidity, a lower cost of capital and heightened visibility from investors. Many large index funds, like the $154 billion Invesco QQQ Trust Series 1 exchange-traded fund, track the Nasdaq 100 and must own all of its members' shares. And actively managed funds that are benchmarked against it have to buy the stocks as well.

The Nasdaq 100 is down 29% this year as growth companies have taken a heavy beating in the stock market rout. By comparison, the S&P 500 Index has lost 17%, while the Dow Jones Industrial Average has declined 8%.

Most Read from Bloomberg Businessweek

  • Airbus Is Coming for Boeing's 737

  • The US's New Approach to Venezuela Is Starting to Bear Fruit

  • China Is the Wild Card for Global Inflation in 2023

  • The Cult of the Retail Trader Has Fizzled

  • Some Bosses Embrace Work From Home to Keep Wages Down

©2022 Bloomberg L.P.

COMMENTS

More Related News

Adani Flagship Shelves $122 Million Bond Plan After Market Rout
Adani Flagship Shelves $122 Million Bond Plan After Market Rout

(Bloomberg) -- Adani Enterprises Ltd. has shelved a plan to raise as much as 10 billion rupees ($122 million) via its first-ever public sale of bonds...

UK Stocks Just Hit a Record. That Might Be as Good as It Gets
UK Stocks Just Hit a Record. That Might Be as Good as It Gets

(Bloomberg) -- Most Read from BloombergWhat You Need to Know About the Suspected Chinese Spy Balloon Floating Over the USTrump Offers $1 Million Bond to...

Inside the 19-Hour Meltdown That Junked Adani
Inside the 19-Hour Meltdown That Junked Adani's Share Sale

(Bloomberg) -- A beaming Gautam Adani stood beside Israeli Prime Minister Benjamin Netanyahu on Tuesday, looking relaxed as hundreds of people gathered for...

This Week in China: The World
This Week in China: The World's Best Stocks Need New Buyers

(Bloomberg) -- China's all-or-nothing stock market is losing momentum, after three months of what might be best described as forced buying of a deeply...

'Teflon' Elon Wins Again as Jury Rejects Fraud Claim Over Tweets

(Bloomberg) -- Elon Musk proved once again that he's difficult to beat in court.Most Read from BloombergWhat You Need to Know About the Suspected Chinese Spy...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business