Top companies that joined the Nasdaq-100 Index today retreated as investors took profits. CoreWeave (CRWV) stock fell 10%, while Nebius (NBIS) declined nearly 3%. Rocket Lab (RKLB) dropped to $96, its lowest level since May 8 and 35% below its year-to-date high. Meanwhile, Astera Labs (ALAB) initially surged to a record high of $440 before pulling back to $423.
These companies joined the Nasdaq-100 Index, replacing Atlassian, ANSYS, Biogen, and MongoDB. Their inclusion marks a major milestone, as the Nasdaq-100 is one of the world’s most prestigious stock market indices. It also means that ETFs tracking the index will be required to purchase their shares, potentially boosting demand for the stocks.
The stocks retreated as investors sold the Nasdaq 100 Index on news of the addition, after it had jumped sharply following the announcement. It is common for stocks to drop after being added to key indices. For example, Robinhood stock jumped sharply last year after being added to the S&P 500 Index and has retreated by over 30%.
There are other reasons why these stocks retreated today. CoreWeave and Nebius dropped because of the ongoing sell-off in the AI industry. NVIDIA stock dropped by 70 basis points, while Amazon and Alphabet fell by over 4%.
READ MORE: HIVE Digital Stock Crosses Key Price, Forms Golden Cross: Is It a Buy?
Rocket Lab continued its strong downward trend as SpaceX plunged for the third consecutive day. It dropped by 10.5% today, with its market capitalization falling to $2.14 trillion, down from over $3 trillion last week.
Other space-related companies like Planet Labs, Intuitive Machines, and RedWire have slumped by more than 30% from their year-to-date highs. These stocks had surged by double- or even triple-digit percentages before SpaceX’s IPO, suggesting investors are selling the news.
On the positive side, these companies are among the fastest-growing in the United States. Analysts expect Nebius’s revenue to jump 550% this year to $3.4 billion, then to $11 billion. CoreWeave’s revenue is expected to soar 146% this year to $12 billion, followed by $24 billion next year.
Rocket Lab’s revenue is expected to surge by 52% this year, followed by 41% next year to over $1.29 billion.
READ MORE: Up By 800% This Year, Analysts Predict Sandisk Stock Has More Upside
