Story
Moderna to Join Nasdaq-100 Index, Replacing Warner Bros. Discovery
Summary
The biotechnology firm will be added to the benchmark technology index before the market opens on October 9, following the acquisition of Warner Bros. Discovery.
Biotechnology company Moderna (MRNA) is set to join the Nasdaq-100 Index before the market opens on October 9, according to an announcement from the index operator. The company will replace Warner Bros. Discovery (WBD) in the widely-tracked, large-cap growth index.
Details of the Index Rebalancing
The change follows the pending acquisition of Warner Bros. Discovery by Paramount-Skydance. That deal is expected to close by October 6, prompting the removal of Warner Bros. Discovery from the index.
The Nasdaq-100 is composed of the 100 largest non-financial companies listed on the Nasdaq stock market based on market capitalization. The index is rebalanced periodically to reflect changes in its constituents, such as those resulting from mergers and acquisitions.
AdMarket Impact
Following the announcement on Thursday, shares of Moderna gained 0.6% in after-hours trading. Inclusion in a major index like the Nasdaq-100 typically leads to increased demand for a company's stock from passive investment funds and exchange-traded funds (ETFs) that track the benchmark.
This forced buying by index-tracking funds can provide a positive catalyst for a stock's price and liquidity. The move solidifies Moderna's position as one of the largest growth companies on the Nasdaq exchange.
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