Caesars, DraftKings, Other Gaming Stocks Miss Out on Nasdaq-100 Promotion

Caesars Entertainment (NASDAQ:CZR) and DraftKings (NASDAQ:CZR) are among the well-known gaming equities that missed out on furtherance to the Nasdaq-100 Index (NDX).

On Friday, Nasdaq proclaimed the yearbook changes to the widely followed equity gauge, noting sextuplet companies will follow added to the index finger piece sevener testament follow removed. Including Caesars and DraftKings, none of the gaming stocks that entered 2022 as contenders to fall in the Nasdaq-100 were elevated to that prominent index.

The Nasdaq-100 Index is composed of the 100 largest non-financial companies listed on The Nasdaq Stock Market and dates to January 1985 when it was launched,” according to the change operator.

The sestet companies joining the index finger are CoStar Group, Inc. (NASDAQ: CSGP), Rivian Automotive, Inc. (NASDAQ: RIVN), Warner Bros. Discovery, Inc. (NASDAQ: WBD), GlobalFoundries Inc. (NASDAQ: GFS), Baker Howard Robard Hughes Company (NASDAQ :BKR), and Diamondback Energy, Inc. (NASDAQ: FANG).

Slumps Prevent Gaming Stocks From NDX

The Nasdaq-100 is cap-weighted index, meaning the largest component – inwards this showcase Apple (NASDAQ:AAPL) – receives the largest weight, and so on.

Market capitalisation is also a key element inward the benchmark’s yearly rebalance, and that explains why Nasdaq-listed gaming stocks didn’t terra firma the sought after furtherance this year. For example, Caesars is lour by 47.25% year-to-date, while DraftKings is sour 49.18%.

Both gaming stocks remain remembers of the NASDAQ Next Generation 100 Index, which is a proving grounds of sorts for entry into NDX. William Penn Entertainment (NASDAQ:PENN) is the other gaming equity in the next propagation index. Down 36.34% year-to-date, Penn was also booted from the S&P 500 inwards September.

With the do good of an almost 32% upsurge simply this quarter, Wynn Resorts (NASDAQ:WYNN) is matted on the year. But regular with a securities industry capitalization of $9.79 billion, the stockpile isn’t a fellow member of NDX, nor does it domicile inward the next generation index.

Why It Matters to Gaming Stocks

Inclusion inward major equity benchmarks such as the Nasdq-100 is relevant to publicly traded companies. That’s because add-on way dynamic monetary fund managers and issuers of forefinger finances and exchange traded funds (ETFs) that runway the forefinger demand to purchase shares of the new added companies.

Specific to the Nasdaq-100, there’s massive amounts capital letter allocated to that index. For example, the Invesco QQQ (NASDAQ:QQQ) has $156.29 1000000000000 inwards assets under management, making it ace of the largest ETFs in the world. The lower-cost Invesco NASDAQ 100 ETF (NASDAQ:QQQM) is just now 26 months and already has $5.88 1000000000000 inward assets.

Translation: Caesars, DraftKings, and the other gaming stocks mentioned hither that are Nasdaq-listed missed come out on a potentiality accelerator past weakness to sett unitedly plenty 2022 upside to merit advancement to the Nasdaq-100 Index.

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