American global e-commerce marketplace Groupon, and laser scanning technology company MicroVision are among the technology firms slated to join the Russell Microcap Index.
As part of the 34th annual Russell US Indexes Reconstitution, the exchange has added 55 technology companies to a preliminary list and removed 23, effective June 24 after market close.
Other notable additions are Aeva Technologies, Bit Digital, AvePoint, Bandwidth, Vroom, Yext, Ouster, Diebold Nixdorf, indie Semiconductor, and BTCS.
While the Russell 2000 is the most widely quoted small-cap index, the Microcap Index is an excellent tool for analyzing trends in smaller, startup companies known as micro-caps.
Groupon, a website and mobile app that provides consumers with coupons, rebates, and group deals, reported its earnings about a month ago. The goods and services company’s shares have climbed about 7.7% since then, outperforming the S&P 500. The sharp boost could be due to an emerging activist investor, RPD Fund Management, run by investor Ahmet Okumus who now owns 9.9% of Groupon.
The coupon provider, at the time of its inception, took advantage of a market need that had been untapped; and focused on the simple fact is that everyone loves a great deal. Restaurants, merchants, and manufacturers use Groupon discounts to get visitors to visit their businesses or buy their products.
Microvision, Inc. develops laser scanning technology for projection, 3D sensing, and image capture. Its stock gained 3.06% over the week and has earned a Neutral rating from the InvestorsObserver Sentiment Indicator.
The Russell Microcap Index includes the smallest 1,000 shares in the Russell 2000 Index, as well as the following 1,000 smallest eligible securities depending on their market capitalization and current index membership weight.
Over-the-counter (OTC) equities and pink sheet securities are removed since the broad index is intended to reflect an unbiased selection of the smallest marketable securities that nevertheless meet exchange listing standards. The Index is recast every year to guarantee that new and rising equities are represented and that companies continue to exhibit suitable capitalization and value characteristics.
Remark Holdings and Exela Technologies are due to exit from the Russell Microcap Index. Other notable deletions are Inpixon, Sigma Labs, BSQUARE, Waitr Holdings, eMagin, Akerna, Verb Technology, Kubient, Data I/O, and WiSA Technologies.
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