Caesars, Penn National Miss Out on Nasdaq-100 Promotion
Caesars Entertainment (NASDAQ:CZR) is among the well-known gaming equities that didn’t wee-wee the rationalize to enter the widely observed Nasdaq-100 Index (NDX).
The Nasdaq-100, which is rest home to the 100 largets non-financial stocks trading on that exchange, underwent its yearly reconstitution on Friday, adding sextet stocks spell removing another six. Those alterations will move into essence on Friday, Dec. 17.
The additions include Airbnb (NASDAQ:ABNB) and galvanizing vehicle maker Lucid Group (NASDAQ:LCID) as considerably as quaternity technology stocks.
As of Dec. 10, the Nasdaq-100 allocates 17 percent of its free weight to the consumer discretionary sector — the radical inwards which gaming equities. However, the indicator had no more gaming exposure prior to the annual rebalance and that remains the case.
Of the sise companies being removed from the benchmark, only Charles James Fox Corp. (NASDAQ:FOXA) has a gaming footprint. The media whale owns the FOX Bet brandmark and has rights to acquire 18.6 percent of FanDuel.
Maybe Next Year for Caesars, Penn
Several gaming equities are members of the NASDAQ Next Generation 100 Index — the grooming ground for the Nasdaq-100.
That radical includes Caesars and William Penn National Gaming (NASDAQ:PENN). Earlier this year, both cassino operators got the nod to fall in to the S&P 500, stoking speculation that a Nasdaq-100 publicity could live inward offing. Caesars stock attempted to hold up up its final stage of the steal as its up nearly 20 percent year-to-date, bringing its securities industry value $19.78 billion.
Penn, however, slumped 43.31 and is now the smallest consumer discretional ingredient inwards the NASDAQ Next Generation 100 Index.
Joining the Nasdaq-100 could feature been a potency supercharge for shares of Caesars and Penn because dynamic fund managers and index number pecuniary resource that benchmark to that gage are forced to buy newly added stocks. On a world(a) basis, dozens of alive(p) and passive pecuniary resource representing hundreds of billions of dollars inwards assets under direction running the index. In the US alone, eight exchange traded monetary resource conform to the Nasdaq-100.
DraftKings, Wynn Miss Out, Too
Caesars and William Penn National aren’t the only if gaming stocks that missed out on the run to the Nasdaq-100. DraftKings (NASDAQ:DKNG) and Wynn Resorts (NASDAQ:WYNN) – formerly a fellow member of the gauge – also didn’t have favorable reception to conjoin the index.
Those II stocks combine for virtually 1.4 percent of the aforementioned NASDAQ Next Generation 100 Index.
While the Nasdaq is the listing locale for an potpourri of other gaming equities beyond the quaternity mentioned here, those names aren’t yet big enough for consideration for the next generation index, indicating they’re a long way of life from becoming viable contenders for Nasdaq-100 inclusion.