Lucid, Zoom, eBay Among 6 Companies Ousted From Nasdaq 100 Index: What This Means For The Stocks
Portfolio Pulse from Shanthi Rexaline
Lucid Group, eBay, Align Technology, Enphase Energy, JD.com, and Zoom Video Communications have been removed from the Nasdaq 100 Index. They will be replaced by CDW Corporation, Coca-Cola Europacific Partners, DoorDash, MongoDB, Roper Technologies, and Splunk Inc. The Nasdaq 100 Index includes 100 of the largest Nasdaq-listed non-financial companies, and membership can influence stock demand. Lucid and JD.com have faced production and regulatory challenges, respectively, while Zoom and eBay are dealing with competitive and macroeconomic pressures. The Invesco QQQ Trust, which tracks the Nasdaq 100, rose slightly on the announcement day.
December 09, 2023 | 5:09 am
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NEGATIVE IMPACT
eBay's removal from the Nasdaq 100 Index could lead to decreased demand from index funds, potentially impacting its stock price negatively.
eBay's exclusion from the Nasdaq 100 Index may result in a decrease in automatic buying by index funds, which could negatively affect the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Lucid Group has been removed from the Nasdaq 100 Index, potentially reducing its visibility and demand among index-tracking portfolios.
Being removed from a major index like the Nasdaq 100 can lead to reduced demand from index funds and ETFs, likely putting downward pressure on the stock in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Zoom Video Communications' removal from the Nasdaq 100 Index may reduce index-based buying, potentially pressuring the stock price.
Zoom's removal from the Nasdaq 100 could lead to a short-term decline in stock price due to reduced buying by index-tracking funds and ETFs.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The Invesco QQQ Trust may experience short-term volatility as it adjusts holdings to reflect the Nasdaq 100 Index's reconstitution.
While the QQQ ETF will adjust its holdings to match the Nasdaq 100 Index, the impact is likely to be neutral in the short term as it is a routine rebalancing event.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70