Megacap Tech Stocks Have Gotten Too Big for Nasdaq 100 Again
- Eight members pushing against limit of diversification rules
- Their combined weight, currently near 52%, may be cut to 40%
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Only a year after having their size clipped in the Nasdaq 100 because they got too big, the world’s largest technology companies may face another pruning when the marquee benchmark rebalances this week.
At issue are regulations designed to cap the influence of the biggest members in the gauge — rules that have been put under stress after companies like Apple Inc. and Microsfoft Corp. swelled to unprecedented size. Nasdaq Inc. has already been forced to address the problem once, in July 2023, when it slashed the weightings of seven companies to return them to compliance. But so great has their growth been in the months since, the gauge is once again too top-heavy, potentially requiring another cull.