The Nasdaq Composite passed the ‘5000’ threshold, which was last reached on March 10, 2000. Below is an overview of key highlights. For additional highlights, please read this NYT articleand this WSJ article*. What makes the Nasdaq Composite different today than 15 years ago?
Numerous things, many of which can be reviewed in a Nasdaq study titled, “The Nasdaq Composite Index: A Fourteen-Year Retrospective” (download here). The following research update highlights an historical account of various Nasdaq-listed companies, along with a breakout of how the composition of the Nasdaq Composite has evolved over the past 15 years. Nasdaq-listed Companies: Remarkable Growth Since the Last Market High
Many Nasdaq-listed companies have grown substantially over the last 15 years, since the Nasdaq Composite last hit an all-time high on March 10, 2000. The table below highlights some of these great companies. While Apple has shown remarkable growth from being a $20 billion company at that point in time to the largest in the world at $759 billion, it is not alone. Amazon’s growth, from $23 billion is now $178 billion today. Other growth stories include the launch and growth of Netflix and Tesla, and the continuous increase in market cap by Starbucks, eBay, Costco and Amgen, just to name a few. Lastly, Gilead Sciences has shown some of the most remarkable growth of all, from $3 billion in March 2000, to a whopping $155 billion today.
Nasdaq Composite Top Ten: Then vs. NowBelow are the current top 10 securities in the Nasdaq Composite.
*Google has two share classes in the Top 10: GOOG (2.56%) and GOOGL (2.17%) Of the current members of the top 10:
- Three were in the top 10 on March 10, 2000 (Microsoft, Intel, Cisco).
- Two have had IPOs (Facebook, Google).
- Five have increased their market caps to become eligible for the top 10 (Apple, Amazon, Gilead Sciences, Comcast, Amgen).
The Nasdaq Composite – How has it evolved over time?To many, the Nasdaq Composite is thought of as a technology index. And while it is tech-heavy, the index has undergone an incredible evolution during the past 15 years:
- In 2001, Technology had a weight of 64 percent - today it is 43 percent.
- The rapidly growing Health Care industry includes a number of the world’s preeminent Biotechnology companies including Gilead Sciences, Amgen, Celgene and Biogen among others. The weight of Health Care has almost doubled, from 9 percent in 2001 to 16 percent today.
- Consumer Services, which includes household names such as Amazon, eBay, Costco, Starbucks, Priceline, Walgreens, Comcast and others, has grown substantially from under nine percent to 21 percent.
In sum, with the Technology weight gradually decreasing, it is more practical to think of the Nasdaq Composite as an index comprised of growth oriented, category-defining organizations, driving innovation in their industries.
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Notes:
- Current / 2015 data above reflects 3/3/2015 market close.
- Index weight reflects composition of Nasdaq Composite Index.
- Note that Google includes both share classes where applicable above.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
