Facebook's Newest Addition

Updated

In the following video segment, Chris Hill, Joe Magyer, and Bryan Hinmon discuss Facebook's inclusion in the Nasdaq-100 as Infosys gets moved to the NYSE.

Facebook is going to enter the Nasdaq index as the eighth-largest company by market cap. This is huge news for the company, and yet the guys don't consider this as a "net plus" for Facebook, though. Typically, when a new company enters the top 100, there is a positive impact in the short-term price of the stock since there is heightened investor awareness. But, since investors already know Facebook so well, there won't be any heightened awareness.

However, inclusion in the Nasdaq-100 is very prestigious. The index has crushed the others in the past five years and this has been possible because of the Apple bias. Also, the Nasdaq-100 doesn't include financial companies so was spared from the financial meltdown.


After the world's most hyped IPO turned out to be a dunce, most investors probably don't even want to think about shares of Facebook. But there are things every investor needs to know about this company. We've outlined them in our newest premium research report. There's a lot more to Facebook than meets the eye, so read up on whether there is anything to "like" about it today, and we'll tell you whether we think Facebook deserves a place in your portfolio. Access your report by clicking here.

The article Facebook's Newest Addition originally appeared on Fool.com.

Chris Hill has no positions in the stocks mentioned above. Joe Magyer has no positions in the stocks mentioned above. Bryan Hinmon has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and Facebook and has the following options: long JAN 2014 $20.00 calls on Facebook. Motley Fool newsletter services recommend Apple and Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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