Story
Moderna to Replace Warner Bros. Discovery on Nasdaq 100 Index
Summary
Biotechnology firm Moderna will join the Nasdaq 100 index, replacing Warner Bros. Discovery effective October 9. The change is driven by Warner Bros. Discovery's pending merger and Moderna's significant growth in market capitalization.
Biotechnology firm Moderna Inc. (MRNA) is set to join the Nasdaq 100 index, replacing media conglomerate Warner Bros. Discovery Inc. (WBD), according to an announcement from the exchange operator. The change will become effective prior to market open on October 9.
Index Rebalancing Details
Nasdaq confirmed the upcoming adjustment on Thursday as part of its regular index maintenance. The Nasdaq 100 comprises the 100 largest non-financial companies listed on the Nasdaq Stock Market based on market capitalization, and periodic rebalancing ensures the index accurately reflects the current market leaders.
The removal of Warner Bros. Discovery is tied to its corporate structure changes. The company is also slated for removal from major indexes managed by S&P and MSCI following the expected closure of its merger with Paramount Skydance on October 6.
AdMarket Impact and Rationale
Moderna's inclusion follows a period of substantial growth. According to a Reuters report, the vaccine maker's valuation has surged to roughly $75 billion this year on the back of a more than sixfold increase in its share price.
This index reconstitution has direct implications for investors and fund managers. Investment vehicles that track the Nasdaq 100, such as exchange-traded funds (ETFs), will be required to adjust their portfolios by selling shares of Warner Bros. Discovery and purchasing shares of Moderna. This rebalancing can lead to increased trading volume and potential price pressure on both stocks around the effective date.
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