- A 312% rally so far at Peloton has helped the connected fitness equipment manufacturer join the ranks of its large-cap technology peers: include them in the Nasdaq 100 index.
- In its annual shakeup at the end of the year, Nasdaq announced it would put six companies off the index, replacing Peloton and 5 other companies.
- Peloton is one of many home-working stocks that have experienced a surge in demand for their core offerings due to the COVID-19 pandemic and its associated stay-at-home orders.
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After a 312% rally to date and a market value of more than $ 35 billion, Peloton will join the ranks of its large-cap technology peers: include them in the Nasdaq 100 index.
The year-end annual shake-up to the technology-heavy index will lead to the removal of 6 companies and the addition of 6 more, Nasdaq said Friday.
Apart from Peloton, the companies to add to the Nasdaq 100 before the market opens on Dec. 21 are American Electric Power, Marvell Technology Group, Match Group, Okta, and Atlassian.
Many of the names being added to the Nasdaq 100 index have seen a surge in demand for their product offerings due to the COVID-19 pandemic and its associated restrictions on businesses and social gatherings.
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Peloton customers have seen their expected distribution time for the associated fitness equipment stretch to months as consumers adjust to closed or limited capacity gyms. Peloton sales are up 172% year-on-year.
Those 6 companies replace BioMarin Pharmaceuticals, Citrix Systems, Expedia Group, Liberty Global, Take-Two Interactive Software, and Ulta Beauty.
The Nasdaq 100 index was launched in 1985 and includes the 100 largest Nasdaq listed non-financial companies. The index is reconstituted every year in December to coincide with Friday the witch’s quarter four times expire.
The Nasdaq 100 is up 38% so far, outpacing the S&P 500’s year-on-year gains by nearly 13%.
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