With the Nasdaq composite eclipsing 5,000 for the first time since March 2000, P&I took a look at the makeup of the index the last time it was over 5,000. According to Nasdaq, on the day the index peaked (March 10, 2000), the combined valuation for composite companies was about $6.6 trillion. At the opening Monday, the combined valuation of firms was $7.6 trillion.
Among the largest 15 companies in the index back in 2000, only four remain in the top 15 today: Microsoft, Cisco, Intel and Qualcomm.
Over the entire 781-week period, only Qualcomm and Microsoft stocks had positive returns -- up 1.54% and 1.34% annually, respectively. Cisco's stock had a cumulative return of -52.5% (-4.8% annually) and Intel was down 24.63% (-1.9% annually).
The composition of the Nasdaq Composite index has changed dramatically. In 2000, technology companies dominated its makeup by number of companies (64.9%), compared to 43.22% today. In 2000, telecom firms were the second-largest (11.8%), but only account for 0.83% of the index today. Consumer services (20.9%) and health care (16.2%) are the second- and third-largest industries by number of firms in the index today.