LLaunched in 1985, the Nasdaq-100 (NDX) is a modified capitalization-weighted index that tracks the largest non-financial companies listed on the Nasdaq Stock Exchange. The Nasdaq-100 Index combines innovation, high growth, diversity, global appeal and liquidity in one basket, making it ideal for any investor’s core portfolio.
Here is an overview of the ten main constituents of the Nasdaq-100 index.
Apple Inc. (AAPL)
Apple became the first publicly traded US company to reach a $1 trillion market capitalization in August 2018. Two years later, in August 2020, it hit the $2 trillion valuation, and this year in June, Apple briefly touched the market cap of $3 trillion during trading. hours. Apple has repeatedly said, “Our goal is to create great products and services that enrich people’s lives and provide an unparalleled customer experience so that our users are highly satisfied, loyal and engaged.” As we achieve these goals, strong financial results follow. Apple reported revenue of $274.51 billion in fiscal 2020 and $365.82 billion in fiscal 2021 (October 2020 – September 2021). During the nine months in fiscal 2022 (October 2021 – June 2022), the company reported revenue of $304.18 billion. Apple spent 6% of its net sales on research and development in fiscal year 2021.
Microsoft Corporation (MSFT)
Microsoft, under its CEO Satya Nadella, has been working under the renewed vision of a “mobile, cloud and data driven world”. In fiscal year 2022 (July 2021 – June 2022), Microsoft delivered $198.3 billion in revenue, up 18% year-over-year from $168.08 billion in fiscal 2021. Its operating profit rose 19% to 83 .4 billion dollars. The cloud has been a growth engine for the business in recent times. With research and development efforts, initiatives, and partnerships, Azure has more than double its global market share of 10% in 2014 to 22% in 2022. During the fourth quarter of 2022, Microsoft Cloud outmoded $25 billion in quarterly revenue for the first time, up 28% and 33% in constant currency. Microsoft has acquired approximately 227 companies since 1994. In recent years, MSFT has made key acquisitions to strengthen its cloud services.
Alphabet, Inc. Class C and Class A (GOOG, GOOGL)
Alphabet is a collection of companies, the largest of which is Google. The company’s revenue is reported under three segments: Google Services, Google Cloud and All Non-Google Businesses collectively as Other Bets. Other bets include earlier-stage technologies that are further removed from the company’s core Google business. Over the past few years, Google has stepped up its efforts to catch up with cloud computing leaders. Much has been done, and today Google Cloud ranks third, after Amazon AWS and Microsoft Azure with a market share of 10%. to share. In fiscal year 2021 (January 2021 – December 2021), Alphabet reported a revenue of $257.64 billion compared to $182.53 billion in fiscal 2020. During the second quarter of fiscal 2022, Google Cloud outmoded quarterly revenue of $6 billion for the first time. Overall revenue of $69.7 billion was recorded, up 13% from last year or 16% at constant exchange rates.
Amazon.com, Inc. (AMZN)
The company once said, “We believe that a fundamental measure of our success will be the shareholder value we create over the long term. This value will be a direct result of our ability to expand and consolidate our current market leadership position. »
Although this is an excerpt from Amazon’s 1997 shareholder letter, it remains true to this day. Amazon is the undisputed leader in e-commerce in the USA, overbearing 39.5% market share in 2022. The American e-commerce market should cross $1 trillion mark for the first time in 2022. Besides e-commerce, another market segment that Amazon continues to dominate is the cloud. Amazon’s AWS currently captures 33% of the cloud market. In fiscal year 2021 (January 2021 – December 2021), Amazon’s net sales increase 22% to $469.8 billion, compared to $386.1 billion in 2020.
Tesla, Inc. (TSLA)
Founded in 2003, Tesla is almost synonymous with electric cars. The company dominates 60.9% of the US BEV market according to July Numbers by Morgan Stanley. Tesla’s income swollen by 71%, from $31.53 billion in fiscal year 2020 to $53.82 billion in fiscal year 2021 (January 2021 – December 2021). During the second quarter of fiscal 2022, Tesla reported total revenue of $16.9 billion, growing 42% year-over-year driven by growth in vehicle deliveries, higher average selling price (ASP) and the growth of other areas of the business. Tesla not only builds all-electric vehicles, but also infinitely scalable clean energy generation and storage products. In 2021, the global fleet of Tesla vehicles, energy storage and solar panels activated its customers to avoid emitting 8.4 million tonnes of CO2e.
Meta Platforms, Inc. (META)
In October 2021, Facebook’s name was changed to Meta. Since its founding in 2004, Facebook has changed the way people connect, and the name change reflects the company’s vision.
Mark Zuckerberg wrote in a letter: “In our DNA, we build the technology to bring people together. The metaverse is the next frontier for connecting people, just like social media was when we started.
The company has been emphasizing augmented reality (AR) and virtual reality (VR), and in August 2020, it introduced a new name for its AR/VR team: Reality Labs. In the fourth quarter of fiscal 2021, Meta added reporting on two operating segments: Family of Apps (FoA) and Reality Labs. During fiscal year 2021 (January 2021 – December 2021), Meta published a revenue of $117.93 billion compared to $85.96 billion in fiscal 2020. FoA includes Facebook, Instagram, Messenger, WhatsApp and other services. Reality Labs includes hardware, software, and consumer content related to Augmented Reality and Virtual Reality.
NVIDIA Corporation (NVDA)
NVIDIA was a pioneer in accelerated computing. The company’s invention of the GPU in 1999 sparked the growth of the PC gaming market, redefined computer graphics, and launched the era of modern AI. Today, NVIDIA is a comprehensive computing company with data center-scale offerings that are reshaping the industry. During fiscal year 2022 (February 2021 – January 2022), the company revenue was $26.92 billion compared to $16.67 billion in fiscal year 2021. The four main segments highlighted in NVIDIA’s revenue report are gaming, data center, professional visualization and the automobile. NVIDIA recently announced its second quarter fiscal 2023 results with revenue of $6.70 billion, up 3% from a year ago and down 19% from the previous quarter. “NVIDIA has great products and a leadership position in large and growing markets. As we address these challenges, we remain focused on the unique opportunity to reinvent computing for the age of AI,” said Jensen Huang, Founder and CEO of NVIDIA.
PepsiCo, Inc. (DYNAMISM)
PepsiCo’s founding dates back to 1965. Today, its products are consumed in more than 200 countries and territories around the world. PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages that each generate over $1 billion in estimated annual retail sales. PepsiCo generated $79 billion in net revenue in fiscal year 2021 (January 2021 – December 2021). PepsiCo’s portfolio includes Lay’s, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream. During the second quarter of fiscal 2022, the company reported $20.22 billion as net revenue for the quarter. PepsiCo became a component of the Nasdaq-100 index in July 2018.
Costco Wholesale Corporation (COST)
Costco Wholesale is a multi-billion dollar global retailer. The company currently operates 834 warehouses, including 575 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 31 in Japan, 29 in the United Kingdom, 16 in Korea, 14 in Taiwan, 13 in Australia, four in Spain. , two in France and China and one in Iceland. Costco also operates e-commerce sites in the United States, Canada, United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia. Its turnover was reported to $195.93 billion for fiscal year 2021 (September 2020 – August 2021) compared to $166.76 billion for fiscal year 2020. For the forty-eight weeks ended July 31, 2022 of current fiscal year 2022 , the society reported net sales of $205.19 billion, an increase of 16.4% from $176.30 billion during the same period last year.
Some of the other prominent names that make up the index are Cisco (CSCO), Qualcomm (QCOM), Intel (INTC), Micron (MU), Adobe (ADBE), Advanced Micro Devices (AMD), Gilead (GILD), Regeneron ( REGN), Vertex (VRTX), Amgen (AMGN), Netflix (NFLX) and Starbucks (SBUX).
Disclaimer: The author has no position in the stocks mentioned. Investors should view the above information not as a de facto recommendation, but as an idea for further consideration. The report has been prepared with care and any exclusions or errors in it are completely unintentional. Details based on company earnings reports and press releases.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.