In the United States, the world of finance is dominated by several major indices. The S&P 500 is undoubtedly the most famous, bringing together the 500 largest American companies. However, the Nasdaq-100 is also crucial since it tracks the 100 largest non-financial U.S. companies.
Recently, Nasdaq announced the addition of three new companies to the Nasdaq-100, highlighting their incredible performance in 2024.
MicroStrategy Incorporated, Palantir Technologies and Axon Enterprise join this index. Their shares soared 547%, 343% and 150%, respectively.
Source : Zonebourse
These companies replace Super Micro Computer, Illumina and Moderna, which are leaving the index. This change will take effect on December 23, 2024. And Bitcoin in all this? If you own an ETF linked to the S&P 500 or Nasdaq-100 (after December 23, 2024), you will indirectly have bitcoins.
Indeed, MicroStrategy holds approximately 423,650 bitcoins, or approximately $43 billion. Currently, the Nasdaq-100 trades at 47.9 times its 2023 earnings and 36.9 times its trailing 12-month earnings. Historically, the Nasdaq has been between 21 and 42 times earnings, which shows that we are at a high level.
Source : Bloomberg
The integration of these three companies, which display high valuations (MicroStrategy at 2.3 times its NAV, Palantir at more than 60 times its turnover and 366 times its profits forecast for 2024, Axon Enterprise at 207 times its profits forecast for 2025), further increases the index multiple, now close to 40 times.
