Palantir dips, super micro soars: why these AI-levered stocks are diverging premarket today

1 mins

AI FOR Finance

07 March 2024, 05:50PM

In BriefPalantir Technologies, Inc. saw a 4.13% decline in premarket trading to $23.90, following exclusion from the S&P 500 Index.
Super Micro Computer, Inc. surged by 11.87% to $1,012.99 after being included in the S&P 500.
Deckers Outdoor Corp. will also join the S&P 500 effective March 18, along with Super Micro Computer.
Stock movements exemplify the significance of index inclusion on stock value and trading dynamics.
Inclusion in the S&P 500 typically prompts purchases by index funds, driving up stock prices and liquidity.

High-flying AI server maker Super Micro Computer and Deckers Outdoor will be joining the S&P 500 effective March 18, it was announced.
Details of the Market MovementShares of data analytics software company Palantir Technologies, Inc. dropped in premarket trading on Monday, whereas AI-server manufacturer Super Micro Computer, Inc. surged. This divergent movement is a result of the contrasting outcomes of these companies in the latest quarterly rebalancing of key S&P indices announced on Friday.
S&P Index ChangesTo the disappointment of Palantir investors, S&P Dow Jones Indices excluded Palantir from the S&P 500 Index but included Super Micro Computer and footwear designer Deckers Outdoor Corp. The changes will come into effect on March 18. Inclusion in the S&P 500 typically benefits stocks as index funds holding portfolios that mirror the index are obligated to buy them to maintain the weightings of the constituent stocks.
Palantir's premarket price dropped by 4.13% to $23.90.
Super Micro Computer's stock price surged by 11.87% to $1,012.99.
Stocks like Palantir's decline and Super Micro's surge showcase the impact of index inclusion on the trading dynamics and valuation of these AI-fueled companies.
Photo via Shutterstock