Monday, September 17, 2012

Facebook stock will joining the Nasdaq 100

Facebook stock will joining the Nasdaq 100 : Facebook’s (FB) stock swoon won’t prevent it from burrowing its way into your mutual fund or ETF. And you may well be wishing that the process would hurry itself up, so your fund doesn’t end up buying at a premium.

The company just notched another milestone on the road to joining the Nasdaq 100, the list of the biggest nonfinancial companies on the Nasdaq. This index drives the PowerShares QQQ (QQQ), among other popular funds. As we reported in April, Facebook could join the Nasdaq 100 as soon as late this year.

Nasdaq OMX Group (NDAQ) said this morning that Facebook is one of nine stocks set to join the NASDAQ Q-50 Index next week, the 50 companies next in line to join its flagship non-financial index. Facebook, with a nearly $48 billion market capitalization, immediately vaults to the top of the 50, ahead of companies such as $14.4 billion Regeneron Pharma (REGN) and $12.5 billion Liberty Media (LMCA). (Texas Instruments (TXN) and Viacom (VIAB), two stocks close to Facebook’s market cap, were admitted to the 100 earlier this year.) Candidates to be bumped out of the Nasdaq 100 in upcoming rebalancings include Netflix (NFLX), whose market cap is down to $3.4 billion, or Warner Chilcott (WCRX), at $3.2 billion, though Kraft’s (KFT) split into two companies could stay at least one of those deletions.

With opinion on Facebook’s stock so sour, investors may well be wishing this process would speed up. Facebook fell beneath $18 early this month but is now moving back toward $23, a level it hasn’t seen since late July. A handful of popular ETFs already own Facebook, including the iShares Russell 1000 Growth ETF (IWF) and companion iShares Russell 1000 ETF (IWB), and the Vanguard Information Technology Index Fund (VGT).

Groupon (GRPN) is also joining the Q-50 Index, Nasdaq said. It won’ t be anywhere near the top of the list, though, with its $3.2 billion market capitalization. Here are the other additions to the Q-50 index, effective prior to the open of trading on Monday Sept. 24:

Concur Technologies, Inc. (CNQR)
Mellanox Technologies, Ltd. (MLNX)
NXP Semiconductors N.V. (NXPI)
ONYX Pharmaceuticals, Inc. (ONXX)
Royal Gold, Inc. (RGLD)
tw telecom inc. (TWTC)
Western Digital Corporation (WDC)

The nine deletions from the index:

Atmel Corporation (ATML)
Endo Health Solutions Inc. (ENDP)
Informatica Corporation (INFA)
Lincoln Electric Holdings, Inc. (LECO)
MercadoLibre, Inc. (MELI)
ON Semiconductor Corporation (ONNN)
Patterson Companies, Inc. (PDCO)
Ryanair Holdings plc (RYAAY)
Sina Corporation (SINA).

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