Investors welcomed news of MicroStrategy’s inclusion in the Nasdaq 100 (QQQ) with a firm 2.5% rally on Monday.
After the close on Friday, the Nasdaq Exchange released its reconstitution of the Nasdaq 100 Index. The annual event changes the holdings of the index which is comprised of the Nasdaq’s 100 largest non-financial stocks.
This year’s additions were MicroStrategy (MSTR), Palantir (PLTR) and Axon Enterprise (AXON).
The three companies replaced Illumina (ILMN), Super Micro Computer (SMCI), and Moderna (MRNA) in the newly weighted Nasdaq 100 Index.
Shares of MicroStrategy are the strongest performer of the three additions to the Nasdaq 100. The bitcoin miner has returned more than 500%n over the last year while Palantir and Axon returned 330% and 148% respectively.
Shares of Palantir and Axon Enterprises traded lower on Monday in comparison to shares of MicroStrategy’s gains. The gains in MSTR display the company’s correlation with the cryptocurrency.
The other two Nasdaq 100 additions were facing pressure as investors “sold the news”.
Investors can consider MicroStrategy’s long-term outlook as bullish with a target of With the outlook for Bitcoin remaining bullish from a long-term perspective with a price target of $550.
