Facebook Inc. (FB) Debuts on NASDAQ-100 Index Wednesday

Facebook Inc. (NASDAQ:FB) has been on quite a recovery of late, as its stock price has jumped about 45 percent in about a month, and has moved up about 2.5 percent since it received word that it would be added to the NASDAQ-100 Index, which constitutes the 100 largest nonfinancial companies traded on the NASDAQ market.

Facebook Inc. (NASDAQ:FB) was slated to join the NASDAQ-100 later this month, but the stock got into the index a little early, as it is debuting Wednesday after former index member Infosys Ltd., jumped to the New York Stock Exchange. With the move, Facebook becomes the 23rd-largest stock component on the index with its %60 million market cap, and that makes up 1 percent of the overall index. With the addition, Facebook may likely continue to see a bit of a boost in its price, as exchange-traded funds (ETFs) will be required to own about $350 million in Facebook shares to be equivalent to Facebook’s weight on the index. The most popular ETF, the PowerShares QQQ Fund, is expected to carry about 88 percent of NASDAQ-100 holdings, or just north of $310 million in Facebook stock.

Facebook Inc. (FB)

Facebook Inc. (NASDAQ:FB) stock jump of 2.5 percent since the announcement of joining the index was notably higher than the average of 1.2 percent jump for stocks in the days following their announcements of joining the index since 2001. Facebook’s $65 billion market cap is nearly three times higher than the former index member Infosys, which was at about $24 billion.

While this is a significant step for Facebook Inc. (NASDAQ:FB) – though expected for a while, as the NASDAQ-100 re-evaluates itself annually, and Facebook was due because of its size – the general thought is if Facebook can get itself onto the S&P 500 Index, that might be where the stock will have its most dramtic move and be its most prominent. However, the company likely won’t get that invitataion for several years, based on history.

How significant is this step for Facebook Inc. (NASDAQ:FB)? How do you think investors like billionaire Paul Tudor Jones of Tudor Investment Corporation will or should handle Facebook shares now that they are part of the NASDAQ-100?

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!