Netflix, RIM, others get boot from key Nasdaq stock index
After Facebook joins the Nasdaq 100, the stock exchange drops EA, Marvell, and VeriSign from its collection of the largest 100 nonfinancial companies trading on the stock exchange.
The shakeup that landed Facebook on Nasdaq's top 100 list is also leading to the departure of other prominent tech players.
Facebook was added last week to the Nasdaq 100, the collection of the largest 100 nonfinancial companies trading on the stock exchange. Facebook's addition to the index came with the departure of IT consulting company Infosys, which is moving over to the New York Stock Exchange.
However, Infosys is not the only tech company leaving the index. A handful of other prominent tech players, including Netflix and beleaguered handset maker Research In Motion will be dropped from the index on December 24, the stock exchange revealed late Friday.
The past 12 months have been rough on both companies' stocks. Netflix recently became the target offollowing months of a lagging stock price, and RIM continues to lose market share to Apple and Samsung, which practically .
But those companies are not alone in getting the boot from Nasdaq's top 100 list. Game maker Electronic Arts, chipmaker Marvell Technology Group, electronics maker Flextronics International, chip equipment maker Lam Research, and Internet infrastructure provider VeriSign will also be removed. Green Mountain Coffee Roasters and pharmaceutical company Warner Chilcott will join them in departing.
Taking their places on the exchange's index are Analog Devices, Catamaran Corp., Discovery Communications, Equinix, Liberty Global, Liberty Media, Regeneron Pharmaceuticals, SBA Communications, Verisk Analytics, and Western Digital.
"Our objective re-ranking process ensures the Nasdaq-100 remains a relevant investable index that is the underlying benchmark for about 7,100 products in 22 countries with a notional value of about $1 trillion," Nasdaq QMX Vice President John L. Jacobs said in a statement.