Here’s what advisers need to know about the Nasdaq 100 changes


The Nasdaq 100 will inaugurate six new companies next Monday as six companies drop from the top ranks, reported CNBC. Here’s a quick look at each of the newcomers and a list of the companies that are leaving.

Palo Alto Networks (PANW) is a cybersecurity company that offers both platform-based and cloud-based services and is the addition that investors are most excited about. The stock has risen by more than 50% this year, outperforming the overall market and promising continued growth.

“The enterprise network security side, the enterprise cloud security side and the enterprise security operations side, all of these segments had had no less than ten new major product releases in the past three. exercises, ”said Delano Saporu, founder of New Street Advisors. “It tells me the company is doing a great job of meeting infrastructure and IT requirements. “

Airbnb (ABNB), the company that has made vacation rentals in existing homes more than just a trend, is also added to the Nasdaq 100. The company hosts an online marketplace where users can find accommodation and other tourist activities in the region. worldwide and is part of an industry that is expected to grow alongside the pandemic recovery.

Fortinet (FTNT) is another cybersecurity company joining the ranks of the Heavy Tech Index; the company creates and sells cybersecurity solutions, including antivirus software, physical firewalls, intrusion prevention systems, etc.

Lucid group (LCID) is an American electric vehicle maker that brings luxury electric vehicle options to consumers with its flagship car, the Lucid Air. Lucid also works in energy storage with batteries and original equipment manufacturing.

Zscaler (ZS) is a security cloud company that offers the Zero Trust Exchange platform and has more than 150 data centers and customers in 185 countries. It offers businesses a way to run their businesses securely through its cloud platform that offers company-specific security protocols without requiring expensive infrastructure.

Datadog (DDOG) is a company that offers cloud-based monitoring of servers and databases and all related applications and programs through its data analytics platform. It allows IT teams to calculate performance metrics and monitor their infrastructure and cloud services through a single tool.

Companies departing from the Nasdaq 100 include Cerner, Fox, CDW, Check Point Software, Trip.com, and Incyte.

“The sector pair that I think ends up helping the index’s performance is probably the addition of Palo Alto and the removal of Check Point Software. I think Palo Alto ends up doing better relative to the market, breaking higher, ”said Ari Wald, head of technical analysis at Oppenheimer.

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