Walmart (WMT) missed inclusion in the latest Nasdaq-100 index update, while Lululemon (LULU) and The Trade Desk (TTD) were removed, reflecting a continued market tilt toward pure-play technology and high-growth digital economy firms. The changes take effect in early 2026.
- Walmart (WMT) was excluded from the Nasdaq-100 index for the upcoming rebalancing cycle.
- Lululemon (LULU) and The Trade Desk (TTD) were removed from the index due to performance and sector alignment concerns.
- Six new companies were added, all in technology-focused subsectors including AI infrastructure and enterprise software.
- The rebalancing takes effect in early 2026, impacting ETF allocations and institutional trading strategies.
- Expected revenue growth for new additions exceeds 20% in the next fiscal year.
- Market volatility is anticipated in the weeks leading up to the official transition date.
The most recent quarterly rebalancing of the Nasdaq-100 index has confirmed that Walmart (WMT) will not be included in the next index composition, despite its large market capitalization and consumer presence. The decision underscores a strategic shift by the index to emphasize companies with dominant positions in information technology, cloud computing, and digital advertising. Walmart’s exclusion follows a broader trend of the index favoring firms with higher revenue growth rates and scalable innovation models over traditional retail giants. Lululemon (LULU) and The Trade Desk (TTD) were both removed from the index, marking a notable shift in the consumer discretionary and information technology sectors. The removal of LULU, a high-growth athletic wear brand, signals that even strong performers in consumer-facing categories are being scrutinized for their long-term technological moat and recurring revenue models. TTD, a leading programmatic advertising platform, was excluded due to declining relative performance and reduced market share in a competitive ad-tech landscape. The Nasdaq-100’s new composition will feature six new additions, including companies in AI infrastructure, enterprise software, and next-generation semiconductors. These firms are expected to drive the index’s forward momentum, with projected revenue growth exceeding 20% in the next fiscal year. The changes are designed to align the index more closely with the broader tech-driven economy and investor demand for growth-focused equities. Market participants are closely monitoring the rebalancing’s impact on ETF flows and trading volumes. Funds tracking the Nasdaq-100 are expected to adjust their holdings in early January 2026, potentially triggering short-term volatility for affected stocks. Institutional investors are also reassessing exposure to consumer discretionary equities with limited digital transformation narratives.