- A 312% year-to-date rally in
Peloton has helped the connected fitness equipment maker join the ranks of its large-cap tech peers: inclusion in theNasdaq 100 index. - In its annual year-end shake up,
Nasdaq announced it would boot six companies from the index, replacing them with Peloton and 5 others. - Peloton is one of many work-from-home stocks that have experienced a surge in demand for their core offerings due to the COVID-19 pandemic and its related stay-at-home orders.
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After a 312% year-to-date rally and a market value of more than $35 billion, Peloton will join the ranks of its large-cap tech peers: inclusion in the Nasdaq 100 index.
The annual year-end shake up to the technology-heavy index will result in the removal of 6 companies and the addition of 6 others, Nasdaq said on Friday.
Aside from Peloton, the companies to be added to the Nasdaq 100 prior to the market open on December 21 are American Electric Power, Marvell Technology Group, Match Group, Okta, and Atlassian.
Many of the names being added to the Nasdaq 100 index have seen a surge in demand for their product offerings due to the COVID-19 pandemic and its related restrictions on businesses and social gatherings.
Peloton customers have seen their expected delivery time for the connected fitness equipment extend into months as consumers adapt to shuttered or capacity restricted gyms. Peloton sales are up 172% year-over-year.
Those 6 companies are taking the place of BioMarin Pharmaceuticals, Citrix Systems, Expedia Group, Liberty Global, Take-Two Interactive Software, and Ulta Beauty.
The Nasdaq 100 index was launched in 1985 and comprises of the 100 largest Nasdaq exchange listed non-financial companies. The index is reconstituted each year in December to coincide with the quadruple witch expiration Friday of the quarter.
The Nasdaq 100 is up 38% year-to-date, outpacing the S&P 500's year-to-date gain of 13% by nearly triple.