Nasdaq

Nasdaq

30 August 2017Reading time: 3 minutes

The Nasdaq broke its own record multiple times during the past period, but just like other indices has now come under pressure of the geopolitical tensions worldwide.

 

Nasdaq stands for National Association of Securities Dealers Automated Quotations and since 1999 has been the largest stock market in the United States. Especially companies that are active in the technology and biotechnology industries are listed on this stock market. Within the Nasdaq-100 are known technology companies listed such as Microsoft, Intel, Facebook, Alphabet and Amazon but also biotechnology companies like Gilead Sciences and Biogen share the same index quotation.

 

One of the most recent and largest IPO’s for the Nasdaq-100 was Snap Inc, the parent company of Snapchat. On March 2 of this year Snap obtained an introduction price of USD 17 and a market value of USD 3,4 billion in total. IPO’s that are also on the agenda for Nasdaq are the Latin-American travel company Despegar.com and the Chinese biotechnology company Zai Lab. These companies want to collect respectively USD 100 million and USD 115 million with their IPO.

 

At this moment Apple is the absolute heavyweight within the Nasdaq and therefore sets the tone most of the time. Over the third fiscal quarter which ended at the first of June, Apple increased their revenue with more than 7% to USD 45,4 billion on an annual basis, while the earnings per share improved from USD 1.42 to USD 1.67. Apple points out that by now 61% of their revenue is realized outside of the US. The stock price of Apple has increased the past period and therefore supported the Nasdaq.

 

Just like most American indices, Nasdaq depends on the extent to which president Donald Trump can implement his plans and which decisions he takes in the worldwide battle scene. For a long time the market hoped that Trump would continue to boost the American economy further. Partly because of this the Nasdaq-100 and the S&P 500 set a record series and the Nasdaq-100 stood at a preliminary high of 5,950.73 points at the end of July.

 

However, the last couple of weeks a decay has occurred partly because of the increased geopolitical tensions between the United States and North-Korea. At this moment of writing these tensions are a little diminished and indices like the Nasdaq are recovering again.

 

Some analysts expect that the Nasdaq will drop further in the coming period but most analysts however believe that the index will end higher at the end of this year compared to the end of 2016. The technology stock market is at a higher level at this moment, but analysts don’t expect a technology bubble like at the beginning of this century. According to analysts the difference this time is that the current spike is supported by improved profits which includes the realized as well as the expected profit. It remains to be seen how the American economy will develop itself and in which extent Trump can implement his planned policy.

 

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16/06/2019 08:58:27