Facebook Inc. (FB): One Step Closer to the NASDAQ 100

Earlier today the NASDAQ announced that Facebook Inc. (NASDAQ:FB) did not make the grade for being included in the NASDAQ 100 Index, just yet. The company will be added to the NASDAQ Q-50 Index on September 24. It has also been mentioned that Facebook could be added to the Dow Jones Internet Composite Index very soon.

Although Facebook did not make the cut for the NASDAQ 100, the company was added to the next best thing, the NASDAQ Q-50 Index, which is designed to track the performance of the fifty securities that are next in line to replace the NASDAQ 100 securities. Another hot IPO company that made the Q-50 Index is Groupon Inc (NASDAQ:GRPN). Groupon has seen its stock price erode over 80% since it opened over $26 during its November 2011 IPO.

setting up a hedge fund

Is the fact that the company is now in the Q-50 Index a buying opportunity, or just another ‘head fake’? It has been said that if the company can get into the NASDAQ 100 Index, it would mean more Facebook Inc. (NASDAQ:FB) share owners, as ETFs must own the index stocks to maintain their benchmarks.

The fact that Facebook was not immediately welcomed into the NASDAQ 100 might be good news for investors, such as George Soros and tiger cub Chase Coleman and the other thirteen hedge funds that had at least 1% of their 13F portfolios invested in Facebook Inc. (NASDAQ:FB) as of the second quarter. Many companies gaining listing privileges on the NASDAQ 100 have not lived up to expectations, and so has Facebook avoided suicide?

Facebook is up almost 2% on the day.  Whether investors like it or not, they will soon have even less of a say as to whether they want to own Facebook Inc. (NASDAQ:FB). The NASDAQ 100 powers the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ), and is a notable part of many ETFs and mutual funds. Notable recent additions to the NASDAQ 100 have been Kraft Foods Inc. (NASDAQ:KFT), added in June, and Texas Instruments Incorporated (NASDAQ:TXN), added in April. Since their additions, Kraft’s stock is even at a 0% and Texas Instruments is down 12%. On the other hand, Viacom, Inc. (NASDAQ:VIAB) joined the NASDAQ 100 in May and is up almost 7%.

Although the market cap of Facebook Inc. (NASDAQ:FB) has been more than cut in half since its IPO, this will likely not stop its ultimate addition into the NASDAQ 100. Whether we like the stock as a long-term investment or not, it is likely to see positive feedback once it is ultimately welcomed. Facebook currently trades at a trailing P/E of 75, but the company’s forward P/E is less than half this mark at 35.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!