The collective dominance of the FAANGs — Facebook Inc., Amazon.com Inc., Apple Inc., Netflix Inc. and Google parent Alphabet Inc. — has pushed the Nasdaq Composite Index closer to the S&P 500 Index on at least one measure.
The ratio of the technology index’s market capitalization to that of the S&P 500 sits at 49 percent, a full percentage point more than the previous high watermark set in the summer of 2000 during the dot-com boom.
The FAANGs, which are up an average of almost 30 percent this year, account for more than a quarter of the Nasdaq compared to just a 13 percent share of the S&P 500 Index.
Source: Bloomberg Pro Terinal
Trader Georgi Bozhidarov