Six firms, including sports simulator maker Peloton Interactive Inc. (PTON) and corporate software developer Atlassian Corporation plc (TEAM), were added to the Nasdaq 100 index on Monday 14 December. During the COVID-19 pandemic, both companies grew dramatically as their services were in demand during the period of forced social distancing and remote work.
The Nasdaq 100 index contains the 100 largest non-financial stocks by market capitalization traded on the exchange of the same name. In addition to the Nasdaq Composite, it is considered one of the two main Nasdaq indices. Before the start of trading on Monday, 21 December, the inclusion of six new companies in the index took place.
The inclusion of stocks would not alter the company’s fundamental metrics, but makes its securities more appealing to investors. Inclusion in the index is, as a rule, accompanied by more exchange-traded funds attention.
Peloton provides home gym equipment for those who exercise without its gym equipment, and also offers subscription fitness content. Today, the company has around 2.6 million users, and this year, when the company expanded the free trial subscription duration, more than a million of them appeared. Indoor gyms, which enabled many users to exercise at home, were also a driver of development.
Since the beginning of the year, stock price of corporate software manufacturer Atlassian has also dramatically increased by more than 92 percent. As well as tools for running third-party applications for this ecosystem, Atlassian’s key asset is the Trello collaboration service. During COVID-19, several organizations were able to coordinate remote work and full-fledged staff contact thanks to the Trello platform.
The business model of Atlassian requires progressive interaction with consumers. Next, the free version of the app can be used by groups. However, as tasks and personnel will grow, the number of available software will also expand steadily, and then the consumer moves to the platform’s paid version. This results in the revenues of Atlassian rising much higher than the client base.
Peloton Interactive, Inc. (PTON) stock was worth $231.8 at the trading on December 28, having increased in price by 435 percent since the start of the year. Atlassian Corporation Plc (TEAM) was down -4.13% to $231.8 in Monday session.