The Nasdaq 100 Seven Years On

The Nasdaq Composite (^IXIC) peaked on March 10, 2000 at 5,048.62, but the Nasdaq 100 (^NDX) reached its peak seven years ago today, March 27, 2000, at 4,704.73. That index, and its ETF (QQQQ), probably best represented the new age of limitless technology profits.
In those seven years, the Nasdaq 100 has lost 61.7%. But that’s not the worst of it. At one point, in October 2002, the index was 82.9% below its 2000 high. As odd as it may sound, going from an 82.9% loss to a 61.7% loss is a great move–a 124% profit. (Woo!)
The index has been largely dominated by five stocks, Microsoft (MSFT), Intel (INTC), Cisco (CSCO), Dell (DELL) and Oracle (ORCL). There are bigger stocks in the index, like Amgen, but these five were the meat that tech investing was all about. Even today, these five stocks still comprise over 30% of the Nasdaq 100’s total market value. However, they make up just 5.4% of the S&P 500.
So how have they done? Since the Nasdaq 100 peaked seven years ago, Microsoft is down 45.8%, Intel is down 73%, Cisco is down 67.1%, Dell is off 59.2% and Oracle is down 58.4%.

Posted by on March 27th, 2007 at 8:36 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.