CandleFocus

MicroStrategy's Addition to Nasdaq-100 May Pave Way for S&P 500 Inclusion: Benchmark

MicroStrategy's addition to the Nasdaq-100 index is seen as a significant development, but its potential inclusion in the S&P 500 index is considered an even greater opportunity, according to broker Benchmark. Although MicroStrategy meets the market cap and trading volume requirements for S&P 500 inclusion, it still needs to report positive earnings for the most recent quarter and consecutive trailing four quarters. However, the company has announced plans to adopt new accounting standards for bitcoin holdings, which could position it to report positive earnings soon. MicroStrategy's entry into the Nasdaq-100 marks a milestone for the stock, as it will be included in various ETFs, but joining the S&P 500 could have a much larger impact, as seen with Tesla's stock surge after its inclusion in 2020.

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