Palantir, MicroStrategy, Axon to Join the Nasdaq-100: What to Know
The Nasdaq-100 is getting three new members this month. Here's what analysts think of Palantir, MicroStrategy and Axon.
Palantir Technologies (PLTR), MicroStrategy (MSTR) and Axon Enterprise (AXON) will join the Nasdaq-100 next week, replacing Super Micro Computer (SMCI), Illumina (ILMN) and Moderna (MRNA).
Shares of the incoming trio are having mixed reactions to the announcement. MicroStrategy is in the lead, up 4% at last check, as inclusion in the Nasdaq-100 often boosts stocks due to demand from index-tracking funds, including the ever-popular Invesco QQQ Trust (QQQ). MicroStrategy stock is also benefiting from bitcoin's new record high of $106,000 over the weekend.
The rebalance of the Nasdaq-100 index will occur ahead of the market open on Monday, December 23.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
What Wall Street thinks about Palantir, MicroStrategy and Axon
Palantir, a tech company that specializes in big data analytics, has been one of the market's best-performing stocks in 2024 with a return of more than 340% in the year to date.
However, Wall Street thinks the tech stock has gotten ahead of itself as the consensus recommendation among the 20 covering analysts S&P Global Market Intelligence tracks is a Hold. Additionally, analysts' average target price for PLTR stock is $41.77, representing a discount of more than 40% to current levels.
But not everyone is on the sidelines when it comes to Palantir. Financial services firm Wedbush is one of the most bullish firms on PLTR with an Outperform rating (equivalent to a Buy) and a $75 price target.
"We are raising our price target on Palantir from $57 to $75, reflecting our increased confidence in the game-changing AIP strategy with use cases for artificial intelligence taking hold over the next 12-18 months," wrote Wedbush analyst Daniel Ives in a November 24 note. "The Messi of AI growth story will see unprecedented demand as more enterprises realize the value of PLTR's entire product suite with more AI use cases."
MicroStrategy, an enterprise software company that has become a bitcoin proxy due to its significant holdings in the cryptocurrency, has posted a jaw-dropping return of over 500% in the year to date.
Wall Street thinks the large-cap stock is going even higher from here with an average price target of $518.68, representing implied upside of about 24% to current levels. Additionally, the consensus recommendation is a Strong Buy.
Financial services firm Bernstein is the most bullish outfit on MSTR stock with an Outperforming rating (equivalent to a Buy) and a $2,890 price target.
"Since August 2020, MSTR has transformed from a small software company to the largest bitcoin holding company, owning 1.1% of world’s bitcoin supply worth roughly $14.5 billion," says Bernstein analyst Gautam Chhugani in a note this morning. "MSTR's founder chairman, Michael Saylor, has become synonymous with brand bitcoin and has positioned MSTR as a leading bitcoin company, attracting at-scale capital (both debt and equity) for an active bitcoin acquisition strategy."
Axon, a company that provides safety and security technology for law enforcement including tasers and body cameras, has risen more than 140% in the year to date, and Wall Street still rates it a Strong Buy. However, analysts' price targets have failed to keep up with the quick-rising growth stock as the average analyst estimate of $598.08 represents a discount of just over 3% to current levels.
Financial services firm Argus has a Buy rating and $800 price target on AXON stock.
"We expect AXON shares to continue to outpace the broader market, driven by the company's strong management team and robust earnings prospects as demand for its products and solutions remains strong," wrote Argus analyst John Staszak in a December 4 note. "We think that Axon can continue to generate positive earnings surprises based on its relatively cautious forecasts."
Related Content
- Analysts' Top S&P 500 Stocks to Buy Now
- Stocks Warren Buffett Is Buying and Selling
- All 30 Dow Jones Stocks Ranked: Buy, Sell or Hold?
-
How to Avoid the Financial Quicksand of Early Retirement LossesSequence of returns — experiencing losses early on — can quickly deplete your savings, highlighting the need for strategies that prioritize income stability.
-
How an Elder Law Attorney Can Help Protect Your Aging ParentsIf you are worried about older family members or friends whose financial judgment is raising red flags, help is out there — from an elder law attorney.
-
Q4 Post-Mortem From an Investment Adviser: Year of ResilienceFinancial pro Prem Patel shares his take on how markets performed in the fourth quarter of 2025, with an eye toward what investors should keep in mind for 2026.
-
This Is How Early Retirement Losses Can Dump You Into Financial Quicksand (Plus, Tips to Stay on Solid Ground)
Sequence of returns — experiencing losses early on — can quickly deplete your savings, highlighting the need for strategies that prioritize income stability.
-
How an Elder Law Attorney Can Help Protect Your Aging Parents From Financial Mistakes
If you are worried about older family members or friends whose financial judgment is raising red flags, help is out there — from an elder law attorney.
-
Q4 2025 Post-Mortem From an Investment Adviser: A Year of Resilience as Gold Shines and the U.S. Dollar Dives
Financial pro Prem Patel shares his take on how markets performed in the fourth quarter of 2025, with an eye toward what investors should keep in mind for 2026.
-
'Donroe Doctrine' Pumps Dow 594 Points: Stock Market TodayThe S&P 500 rallied but failed to turn the "Santa Claus Rally" indicator positive for 2026.
-
Is Your Emergency Fund Running Low? Here's How to Bulk It Back UpIf you're struggling right now, you're not alone. Here's how you can identify financial issues, implement a budget and prioritize rebuilding your emergency fund.
-
An Expert Guide to How All-Assets Planning Offers a Better RetirementAn "all-asset" strategy would integrate housing wealth and annuities with traditional investments to generate more income and liquid savings for retirees.
-
7 Tax Blunders to Avoid in Your First Year of Retirement, From a Seasoned Financial PlannerA business-as-usual approach to taxes in the first year of retirement can lead to silly trip-ups that erode your nest egg. Here are seven common goofs to avoid.
-
How to Plan for Social Security in 2026's Changing Landscape, From a Financial ProfessionalNot understanding how the upcoming changes in 2026 might affect you could put your financial security in retirement at risk. This is what you need to know.
