I read an article (http://www.cnbc.com/id/100446727) indicating that the Nasdaq was set to close at it's highest level since November 9, 2000. That level of 3,183.95 is well off it's all time high of 5,048 set on March 10, 2000. This led me to reminisce the tech bubble and what has happened since that time and what really drives and index? Back in the late 90's and early 2000's, the largest components of the Nasdaq were driven by companies such as Microsoft, Dell, Intel, Cisco, and Yahoo. These companies were so large compared to all the other companies comprising of the Nasdaq that their stock prices controlled the direction of the Nasdaq index.
I thought it would be a good idea to compare the stock price for each of these companies going all the way back to March 10, 2000 and see where they are today. Here is what I found using Yahoo Finance's historical pricing application:
Company March 10, 2000 February 11,2013 Percent Change
Microsoft $38.31 $27.69 -27.72%
Dell $50.44 $13.65 -72.94%
Intel $47.24 $21.01 -55.52%
Cisco $65.66 $21.20 -67.71%
Yahoo $89.03 $20.80 -76.63%
The largest companies of the NASDAQ index today are the following:
Company Market Cap
Apple $446 Billion
Google $258 Billion
Microsoft $230 Billion
Oracle $165 Billion
Amazon $119 Billion
Qualcom $115 Billion
Cisco $112 Billion
Intel $104 Billion
The above companies will drive the Nasdaq Index over the next 5 years. It will be interesting to see what companies will dominate the index 10 years from now.
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