eBay Dropped From Nasdaq 100 Amidst Increasing Competition & Macroeconomic Headwinds
eBay among six stocks set to be removed from the Nasdaq 100 Index as part of annual reconstitution, effective prior to the market open on Dec. 18, 2023.
The Nasdaq exchange announced late Friday that along with eBay, electric vehicle maker Lucid, Align Technology, Enphase Energy, JD.com and Zoom Video Communications will all be removed from the index, replaced by CDW Corporation, Coca-Cola Europacific Partners, DoorDash, MongoDB, Roper Technologies, and Splunk.
Benzinga Editor, Shanthi Rexaline, cites competition from Amazon and macroeconomic headwinds as reasons for eBay's removal.
Shanthi Rexaline
Lucid has struggled with production ramp and weak deliveries and the company’s stock price has fallen from a post-IPO high of about $58 to under $5. JD.com has seen its fortunes sag amid the Chinese government’s clampdown on high-profile tech stocks.
Zoom Video, a COVID-19 play, which was trading at over $588 level, has now dropped to under $75. eBay, meanwhile, is facing the heat of competitive pressure from Amazon, Inc. , while macroeconomic challenges have also posed headwinds.
eBay has been traded on The Nasdaq Global Select Market since September 24, 1998.
This reconstitution is an annual affair and inclusion or removal of companies is part of a routine process based on the index's methodology.
Criteria for being included in the index depends on market capitalization and volume, among other things. The removal indicates a shift in favor of other companies that met these criteria more closely, reflecting eBay's shrinking footprint and uncertain overall long-term business outlook.
