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Nasdaq 100 to Undergo Rebalancing: Best Stocks to Watch

UTC by Daria Rud · 3 min read
Nasdaq 100 to Undergo Rebalancing: Best Stocks to Watch
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Nasdaq 100 will include stocks of Marvell Technology, Okta, and Atlassian. Besides, it will add American Electric Power, Match Group, and Peloton Interactive stocks.

At the end of this week, the Nasdaq 100 stock market index will undergo rebalancing. In other words, it will review the companies included, re-rank eligible companies, and make adjustments. Nasdaq 100 will look different, with some stocks falling behind the index, and some stocks being added.

Firstly, stocks of companies like Ulta Beauty Inc (NASDAQ: ULTA), Citrix Systems Inc (NASDAQ: CTRX), and Take-Two Interactive Software Inc (NASDAQ: TTWO) will be removed. Instead, Nasdaq 100 will include stocks of Marvell Technology Group Ltd (NASDAQ: MRVL), Okta Inc (NASDAQ: OKTA), and Atlassian Corporation Plc (NASDAQ: TEAM). Besides, it will add American Electric Power Company Inc (NASDAQ: AEP), Match Group Inc (NASDAQ: MTCH), and Peloton Interactive Inc (NASDAQ: PTON) stocks.

The stocks mentioned have shown great performance this year. For example, Peloton stock is 329% up this year. Marvel shares are up nearly 67% this year, which brings its market value to about $30 billion. Further, Atlassian that will be the 45th most-valuable Nasdaq 100 stock, has soared by 95% this year.

Amazon and Netflix Stocks to Watch ahead of Nasdaq 100 Rebalancing

Mark Tepper, Strategic Wealth Partners president, and Todd Gordon, TradingAnalysis.com CEO, have discussed Nasdaq 100 rebalancing in CNBC’s “Trading Nation”. Besides, they have commented on the performance of Amazon.com Inc (NASDAQ: AMZN) and Netflix Inc (NASDAQ: NFLX) stocks.

Mark Tepper said:

“Both of these stocks have been duds since the summertime, they traded sideways, they’ve been consolidating since like June. And in my opinion that gives us a good buying opportunity.”

Speaking of Amazon, Tepper said:

“Amazon tends to go through these heavy investment cycles. … Whenever that happens investors get spooked and the multiple comes down, and then 12 to 18 months later, the investment stops, the profit spigot turns on and everyone gets blown away by the number. You buy it when they’re investing heavily and when the stock is treading water.”

This year, Amazon stock is 75.39% up. Yesterday, it closed at $3,240.96 and added 0.08% after hours. According to Tepper, Amazon shares have all chances to hit $4,000 by the end of 2021.

As for Netflix, it is 62.20% higher year-to-date. Netflix market cap hit $229.64 billion. On Wednesday, Netflix shares closed at $524.83.

Tepper said:

“They’ve got the secret sauce in the streaming game. They’ve got the perfect blend of quantity and quality. I think Netflix has more pricing power than Disney. I think it goes a lot higher from here.”

According to Tepper and Gordon, both Amazon and Netflix stocks have strong potential. Earlier, CNBC’s “Mad Money” host Jim Cramer also said that these shares are most reliable for investment.

Business News, Editor's Choice, Indices, Market News, News
Daria Rud
Author Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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