Big news for anyone watching the stock market: Walmart will become part of the Nasdaq 100 index, while drugmaker AstraZeneca will leave the list.
What the Nasdaq 100 Index Is
The Nasdaq 100 tracks the 100 largest non‑financial companies listed on the Nasdaq exchange. It is used as a benchmark for many investment funds and ETFs, including the popular Invesco QQQ.
Why Walmart Is Joining
Walmart moved its listing from the New York Stock Exchange to Nasdaq last year, making the biggest exchange switch ever. The retailer’s market value has now topped $920 billion, thanks to strong sales of low‑price items and growth in its online business.
- U.S. e‑commerce is expected to become profitable this year.
- Advertising, marketplace and membership revenues are rising.
- Walmart is adding artificial‑intelligence tools for internal operations and shopper help, partnering with OpenAI.
AstraZeneca’s Exit
AstraZeneca fell out of the index after its COVID‑19 vaccine sales faded. The company’s share price has lagged as investors focus on competitors’ obesity drugs.
Impact on Investors
Adding Walmart gives the Nasdaq 100 more exposure to a stable, cash‑rich retailer, which could appeal to risk‑averse investors. At the same time, funds that track the index will have to sell AstraZeneca shares.
- ETFs that follow the Nasdaq 100 will rebalance their holdings around Jan 20.
- Retail investors holding Nasdaq‑linked funds may see a small shift in performance.
Bottom Line
Walmart’s entry reflects its strong market position and growth in digital sales, while AstraZeneca’s departure shows how quickly a drugmaker’s fortunes can change after a pandemic peak.
Remember, this is just an overview, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.