MicroStrategy Could Join Nasdaq 100 with Market Cap of $95 Billion
MicroStrategy may join the Nasdaq 100 later this month, which includes major non-financial companies listed on Nasdaq.
A Nasdaq spokesperson stated that changes to the index would be announced tonight at 8 PM ET, with adjustments effective on Dec. 23.
MicroStrategy’s market capitalization is approximately $95 billion, meeting the requirements for inclusion, according to analysts.
The Nasdaq committee’s decision may hinge on MSTR’s ICB classification. Bloomberg Intelligence analyst James Seyffart noted that much of the company’s share performance is tied to its bitcoin purchases, raising questions about its classification as a “financial” stock and potential ineligibility.
TD Cowen analyst Lance Vitanza estimates the likelihood of MSTR’s inclusion in the Nasdaq 100 at 60-80%, citing its operating software business as a distinguishing factor from traditional financial companies. However, he expressed uncertainty about whether inclusion would lead to a price spike.
Benchmark’s Mark Palmer indicated that the stock, which has increased by 480% this year, could benefit from passive funds like Invesco’s QQQ purchasing shares if included in the index.
Vitanza acknowledged that while inclusion might broaden the investor base and enhance long-term capital access, it would not alter their view of the stock. TD Cowen raised their price target for MSTR from $525 to $550; shares were trading at approximately $397 at 2 PM ET.