With iconic global brands like Campbell’s, Palantir, Domino’s and SAIC all making the switch to Nasdaq in 2024, we ended the year on a strong note with 30 new transfers totaling over $181 billion in market value. Palantir was the largest switch of the year on any exchange, while Campbell’s, founded in 1869, represents the oldest-founded company to switch in our history. Our recent momentum brings the combined market value of switches to Nasdaq to an incredible $2.8 trillion since 2005.
2024 was the sixth consecutive year of Nasdaq’s leadership by number of IPOs and proceeds raised. We proudly welcomed 180 new listings, an 82% win rate of Nasdaq-eligible IPOs in the U.S., including Lineage, Waystar, and ServiceTitan.
New Data On Why Over 500 Listings Have Transferred To Nasdaq Since 2005
In 2024, we celebrated a major milestone when we welcomed the 500th listing transfer to Nasdaq. In the recent blog Why More Than 500 Listings Have Switched to Nasdaq, Phil Mackintosh, Nasdaq’s Chief Economist, explores why leading companies have increasingly chosen to make the switch. In his analysis, Mackintosh looks at how different companies trade before and after transferring to Nasdaq, comparing market quality for the exact same stock days apart. He finds that companies that switch experience lower volatility and tighter spreads while on Nasdaq; on average, spreads for symbols that switched had spreads around 12% lower when listed on Nasdaq, as well as 35% more depth at the NBBO. Switches to Nasdaq also saw a reduction in volatility during continuous trading and auctions, with opening auction volatility lower by 3% on Nasdaq, and closing auction volatility lower by 17%.
“Using switches is one of the cleanest ways to compare different listing venues,” Phil writes. “The results still show that stocks trade better when they are listed on Nasdaq. That’s true in the open auction, during the day, and in the close. So, it’s no surprise that over 500 companies have already switched to Nasdaq.”
A Look Inside Why Some Of 2024’s Biggest Switches Made The Move
Palantir, the largest switch to any exchange in 2024, cited index inclusion as a key benefit to listing on Nasdaq. When announcing their switch, Palantir shared that they switched to have the opportunity to be included in the Nasdaq-100® Index, which is only open to Nasdaq-listed companies. The Nasdaq-100® Index is the underlying index for the QQQ, the 2nd most traded ETF in the U.S. based on average daily volume. Overall, nearly $500 billion in AUM tracks the Nasdaq-100 index, and over 1.2 million contracts are traded daily on average across futures and options. After a successful year for their stock, Palantir was included in the Nasdaq-100® during reconstitution in December 2024, allowing them to benefit from new passive ownership.
Overall interest in passive investing has surged in recent decades, with trillions of dollars flowing into index funds and ETFs. Index inclusion opportunities like the Nasdaq-100 are a key benefit to leading companies, as passive investors provide increasing long-term stability compared to active managers. Inclusion in major indices ensures access to this growing pool of capital. Index addition also creates a significant amount of liquidity by increasing demand, and companies benefit from additional long-term holders through index tracking funds and increased turnover from index addition.
“It’s important to note that companies benefit from being added to major indexes as they see significant new (and typically long-term) investors,” said Phil Mackintosh, Nasdaq’s Chief Economist. Index rebalance days see exceptionally large closing volumes, and an analysis of index day close trading indicates index tracking funds could own around 25% of float shares in many companies.
In a recent interview, Campbell’s senior leadership spoke on the benefits of their switch to Nasdaq, naming a well-executed investor day, ease of transition, and cultural alignment as main drivers. For Campbell’s investor day, Nasdaq transformed our midtown event space into a series of interactive brand activations, each showcasing a different Campbell’s product line. Campbell’s used the investor day as a platform to launch their rebrand and official name change from the Campbell Soup Company to The Campbell’s Company.
Campbell’s viewed Nasdaq’s MarketSite space as a key advantage when connecting with investors, starting with its central location near the majority of investment management firms. The total AUM of investment management firms within walking distance of Nasdaq is now over $20 trillion, a testament to the trend in recent years of financial firms moving to midtown, the “new wall street.”
Nasdaq MarketSite, which celebrated its 25th anniversary in 2024, is also a hub for media. CNBC hosts two shows daily, Squawk Box and Fast Money, from Nasdaq. With two newly renovated broadcast studios, Nasdaq MarketSite offers Nasdaq listed companies an ideal location to amplify their brand visibility, increase investor engagement, and promote milestones. Nasdaq’s event space also serves as a hub for networking, thought leadership, and market intelligence, helping companies connect with key audiences and enhance their market presence.
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