Moderna Just Joined the Nasdaq-100. Here's What That Means for Investors.
Key PointsThe recent meteoric rally of MRNA shares has made Moderna a massive company.
Moderna (MRNA -7.82%) has recently been added to the Nasdaq-100 index by Nasdaq Inc., a development that could impact investors. The index includes the 100 largest Nasdaq listings not in the financial sector and only highlights a company's inclusion on the list as a positive signal. Although the addition doesn't change the company's financial performance, it puts Moderna in the spotlight of more investors, potentially making it more attractive for fund managers overseeing ETFs that mirror the Nasdaq-100 Index to add the stock to their portfolios.
These ETFs, such as the Invesco QQQ Trust (QQQ -2.50%), hold a substantial amount of Moderna stock, indicating a shift towards institutional ownership. Despite this, the primary reason for considering Moderna as an investment remains its potential cancer vaccines, particularly the intismeran autogene treatment for melanoma, which showed great effectiveness in phase 3 trials.
Recent FDA approvals of an updated COVID-19 vaccine and a Moderna-made flu vaccine are also contributing to Moderna's recent 700% stock increase, bringing its market cap up to qualify it for the Nasdaq-100.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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