The Nasdaq-100 (NDX) was introduced in 1985 and is a revised capitalization weighted index that follows the 100 biggest non-financial businesses listed on the Nasdaq Stock Market. The Nasdaq-100 Index is perfect for every investor’s core holdings since it combines innovation, strong growth, variety, global appeal, and liquidity.
To better understand the Nasdaq-100 Index, let’s take a deeper look at its top ten components.
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As of August 2018, Apple was the first publicly listed U.S. business to reach a $1 trillion dollar market valuation. In August of 2020, two years later, its market value reached $2 trillion, and in June of this year, for a short period of time, Apple’s market cap surpassed $3 trillion. Apple’s stated mission is to “create excellent goods and services that improve people’s lives and deliver an exceptional customer experience” in the hopes that its customers would be “very pleased, loyal, and engaged.” As these goals are met, we will see positive financial outcomes. It was reported that Apple made $274.51 billion in fiscal year 2020 and $365.82 billion in fiscal year 2021. (October 2020 – September 2021). Its revenue was $304.18 billion for the first nine months of FY2022, which runs from October 2021 to June 2022. The proportion of Apple’s net sales allocated to R&D was 6% in FY2021.
A new “mobile-first, cloud-first, data-powered world” vision has been driving Microsoft’s efforts under CEO Satya Nadella. Microsoft’s revenue of $198.3 billion in fiscal year 2022 (July 2021–June 2022) was an increase of 18% from fiscal year 2021’s revenue of $168.08 billion. The company had a 19% increase in operating profits, reaching $83.4 billion. The cloud has become a key growth area for the corporation. Azure’s global market share has more than doubled, from 10% in 2014 to 22% in 2022, because of the company’s investment in R&D, initiatives, and partnerships. Microsoft Cloud’s quarterly sales topped $25 billion for the first time in the fiscal year 2022 fourth quarter, an increase of 28% and 33% in constant exchange rates. Since 1994, Microsoft has bought around 227 other businesses. Microsoft has made many strategic purchases in recent years to boost its cloud offerings.
Google is the major company in Alphabet, which consists of a number of other companies. Profits are broken down into three categories: Google Operations, Google Cloud, and Other Bets (which includes everything else the firm does). Early-stage technologies that are a departure from Google’s main focus are included in Other Bets. Google’s attempts to catch up to the market leaders in Cloud technology have ramped up in recent years. So much progress has been made that Google Cloud is now the third most popular cloud service, with a 10% share of the market, after Amazon Web Services and Microsoft Azure. Alphabet’s revenue increased to $257.64 billion for FY2021 (January 1, 2021, to December 31, 2021). This is a significant increase from the $182.53 billion recorded during FY2020. Google Cloud’s quarterly sales hit a new high of $6 billion in Q2 of FY2022. Revenue of $69.7 billion was recorded, an increase of 13% over the previous year and 16% when adjusted for inflation.
Creating long-term value for our shareholders is a key metric of our performance,” the business added. Achieving this worth is directly related to maintaining and expanding our dominant position in the market.
This is from a shareholder letter Amazon sent out in 1997, yet it is just as relevant now as it was then. As of 2022, Amazon will have captured 39.5% of the U.S. e-commerce industry, making it the clear market leader. In 2022, the e-commerce industry in the United States is projected to reach $1 trillion for the first time. In addition to dominating the e-commerce business, Amazon also maintains a dominant position in the Cloud services market. At this time, Amazon Web Services (AWS) accounts for 33% of the Cloud market. Compared to FY2020 (January 1, 2020 – December 31, 2020), FY2021 (January 1, 2021) saw a 22% rise in net sales for Amazon, reaching $469.8 billion.
Tesla, which was founded in 2003, is almost a shorthand for electric vehicles. According to data collected by Morgan Stanley in the month of July, the business controls 60.9% of the U.S. BEV market. From FY2020’s $31.53 billion to FY2021’s $53.82 billion, Tesla’s revenue increased by 71%. (January 2021 – December 2021). Income of $16.9 billion was announced by Tesla for Q2 FY2022, an increase of 42% year over year, driven by more car deliveries, higher average selling prices (ASPs), and increasing revenue from other sources. As well as producing fully electric automobiles, Tesla also produces sustainable energy generating and storage systems that may be scaled indefinitely. Customers using Teslas, energy storage, and solar panels avoided releasing 8.4 million tons of CO2e worldwide in 2021.
It was announced in October 2021 that Facebook will be rebranded as Meta. The name change reflects the company’s evolution since its 2004 inception and its mission to revolutionize interpersonal communication.
In a letter, Mark Zuckerberg said that “In our DNA, we develop technology that brings people together.” For us, social networking was the beginning of the internet, and the metaverse will be the same for future generations.
As of August 2020, the company’s AR/VR division is known as Reality Labs, reflecting the division’s growing importance. The fourth quarter of FY2021 was the first quarter that Meta reported on two business divisions, Family of Apps (FoA) and Reality Labs. In fiscal year 2021 (which ran from January 1, 2021, to December 31, 2021), Meta reported $117.93 billion in sales, up from $85.96 billion in fiscal year 2020. Facebook, Instagram, Messenger, and WhatsApp are just a few of the services that fall under the FoA umbrella. All consumer-facing augmented and virtual reality devices, apps, and media are represented in Reality Labs.
When it comes to fast processing, NVIDIA was first. In 1999, the business invented the GPU, which revolutionized computer graphics and ushered in the age of contemporary artificial intelligence. NVIDIA has evolved into a full-stack computing corporation, delivering products and services at the size of data centers. Revenue for the fiscal year ending in January 2022 was $26.92 billion, up from $16.67 billion in the prior fiscal year, FY2022. In its financial report, NVIDIA emphasized its gaming, data center, professional visualization, and automotive businesses. Recent financial reports from NVIDIA show that the company brought in $6.70 billion in sales during the second quarter of fiscal year 2023, up 3% year over year but down 19% quarter over quarter. NVIDIA’s strong products and market dominance are fueling fast-expanding industries. NVIDIA founder and CEO Jensen Huang stated, “As we negotiate these obstacles, we remain focused on the once-in-a-generation chance to revolutionize computing for the era of AI.”
In 1965, PepsiCo was established. Its goods are purchased now in over 200 different nations and territories. Numerous tasty meals and drinks, many of which produce over $1 billion in yearly retail sales for PepsiCo, may be found in the company’s product catalog. The net income for PepsiCo in FY2021 was $79 billion (January 2021 – December 2021). Among the many brands that PepsiCo sells include those of Lay’s, Cheetos, Doritos, Pepsi, Coca cola, Mtn Dew, Quaker, and SodaStream. The company’s net revenue for the second quarter of fiscal year 2022 was $20.22 billion. In July of 2018, PepsiCo was added to the Nasdaq-100 Index.
With annual sales in the billions, Costco Wholesale is a worldwide powerhouse in the retail industry. As of this writing, the firm runs a total of 834 warehouses spread over the globe: 575 in the US & PR, 107 in Canada, 40 in Mexico, 31 in Japan, 29 in the UK, 16 in Korea, 14 in Taiwan, 13 in Australia, 4 in Spain, 2 each in France & China, and 1 in Iceland. The United States, Canada, the U.k., Mexico, Korea, Taiwan, Japan, and Australia are all home to Costco’s online retail locations. In fiscal year 2021 (September 2020 – August 2021), it recorded $195.93 billion in sales, up from $166.76 billion the previous year. Net sales during the forty-eight weeks ending July 31, 2022, of the current FY2022 were $205.19 billion, up 16.4% from $176.30 billion in the same period in 2021.