Facebook To Be Added To Nasdaq 100 Index

The speculation of earlier this week was confirmed: Facebook will be added to the Nasdaq 100 Index next week, as Nasdaq parent Nasdaq OMX Group announced that the social network’s stock will replace Infosys on the index before the start of trading Dec. 12.

On that date, Infosys will leave Nasdaq for the New York Stock Exchange.

Bloomberg reported that Nasdaq reduced its waiting period to include Facebook in the Nasdaq-100 Index as part of negotiations prior to the social network’s May 18 initial public offering, when the company was in the process of deciding between Nasdaq and the NYSE.

Robert W. Baird & Co. Analyst Colin Sebastian told Bloomberg:

Adding Facebook to the index should create some additional demand for shares, but more important in our view is the progress Facebook is making since the summer on mobile and with the Ad Exchange.

And Ipox Schuster Founder Josef Schuster told Bloomberg:

It will be supported till Dec. 12 by systematic buying, then after, it may give away the short-term gains. Facebook has traded pretty strongly over the past five or six weeks, and it will continue to outperform the Nasdaq 100. The fact its inclusion is coming up will reinforce its outperformance versus the Nasdaq 100.

Readers: Do you think Facebook’s addition to the Nasdaq 100 Index will affect its share price?

Related Stories
Mediabistro Course

Instagram Marketing

Instagram MarketingStarting October 27, learn how to gain likes and followers on one of the most popular social media platforms! In this course, you'll learn how to develop an Instagram strategy that will make your profile stand out and gain new followers, tell your brand's story through photos, and use your profile to drive your sales and business objectives. Register now!