Further advance Nasdaq seems inevitable

Further advance Nasdaq seems inevitable

01 February 2018Reading time: 2 minutes

Analysts expect that Nasdaq-100 stocks could continue to grow but also see the first signs of an overheating economy.

Increase potential

The optimism on the technology stock market continued in the first weeks of 2018. The index reached several new records earlier this year. It recently benefited from a stock price increase of Netflix. The online video streaming service welcomed 8.33 million new subscribers in the last quarter of 2017, where analysts counted on 6.34 million. Throughout 2017 the number of subscribers rose with 24 million and thus Netflix has now over 117.6 million paying subscribers worldwide. The stock price rose after market hours, which also pushed the Nasdaq.

Analyst Philip van Doorn claimed early this year at Marketwatch, that a majority of the analysts rely on a further increase of the Nasdaq in 2018. From the 100 stocks within the index, analysts are predominantly positive about 67 of them according to data from FactSet. There are 18 shares which are considered buy worthy by at least 85% of the analysts.

However, there is a possible risk that companies could enter into expensive mergers and acquisitions as a result of the increased stock prices, which could eventually pressurize the turnover and profit per stock. Technology shares also show signs of overheating in the run-up towards the presentation of the quarter results. It remains to be seen how the results of the index heavyweights, such as Apple, Microsoft and Amazon.com pan out and which effect they could have on the stock prices of the shares and the index.

Vontobel products on Nasdaq are tradable at DEGIRO, Lynx and Interactive Brokers.

Important legal information:

This information does not constitute a financial analysis, but product advertisement. Thus it does not meet the legal requirements to ensure the impartiality of financial analysis and is not subject to trade prohibition before the publication of a financial analysis.

Fordetailed information, particularly regarding the structure and the risks associated with an investment in the derivative financial instruments, prospective investors should read the Base Prospectus, which is available together with the Final Terms and any supplement to the Base Prospectus in electronic form on the issuer’s website: http://beursproducten.vontobel.com. Additionally, the Base Prospectus, anysupplements to the Base Prospectus and the Final Terms are available inprinted form, free of charge, at the registered office of the issuer: Vontobel Europe AG, Bockenheimer Landstrasse 24, 60323
Frankfurt am Main, Germany.

Investors should consider the applicable selling restrictions.
Companies of the Vontobel group may directly or indirectly pay commissions in varying amounts to third parties (e.g. brokers) in connection with the public offer and the distribution of the derivative financial instruments. Further information is available upon request from your distribution partner.


16/09/2019 08:39:11