NASDAQ
In 1971, the fully electronic trading platform Nasdaq was founded in America. Fourteen years later, in 1985, a condensed version of it was created, the Nasdaq 100, which brought together the 100 most valuable and important American tech companies. Nasdaq revolutionized stock trading by replacing the physical trading floor with a computer network. Nasdaq was the crucial financial source without which global companies like Apple, Microsoft, Amazon, Alphabet, Meta, Tesla, and Nvidia couldn't have made their visions a reality.
In 1985, the Nasdaq100 Index started at 250 points. By 2026, it reached an all-time high of 30,762 points. Over 41 years, the Nasdaq100 Index exploded by 12,000%.
Price target for the Nasdaq100 Index by mid-2028: 40,000 points
Magnificent 7 - The Glorious 7
Nvidia, Apple, Alphabet, Amazon, Meta, Microsoft, and Tesla together make up the Magnificent 7, which are the main drivers of the NASDAQ 100.
The fantastic 7 are highly valued and popular with investors because of their stable business model: market power, solid growth, sharply rising profits, strong balance sheets, and high profit margins.
Business models have become predictable because companies no longer charge one-time licensing fees like they used to, but have shifted more toward subscription models, which means revenue that comes in regularly every month and is therefore easier for investors to estimate. The best examples of this are the cloud businesses of Microsoft, Google, and Amazon, or subscriptions like Apple Music for Apple or Amazon Prime. The high demand for these services means that the profits of tech giants grow much more strongly and sustainably than the profits of other companies, and success in their business areas has almost monopolistic characteristics. They generate double-digit profits from quarter to quarter and are therefore massive money-making machines. Accordingly, their stock valuations rise exponentially. That’s also why they’re among the biggest and most important companies in the world.
An Overview of the IPOs of the Big 7
1. Apple 12.12.1980, current market value: $4.7 trillion
2. Microsoft 13.03.1986, current market value: $3.8 trillion
3. Amazon 15.05.1997, current market value: $2.9 trillion
4. Nvidia 22.01.1999, current market value: $5.3 trillion
5. Alphabet (GOOGLE) 19.08.2004, current market value: $4.2 trillion
6. Tesla 29.06.2010, current market value: $1.4 trillion
7. META (FACEBOOK) 18.05.2012, current market value: $1.5 trillion
Outlook 2027
In the chart, the Nasdaq 100 Index has doubled from 15,000 to 30,000 points. We expect it to reach the 40,000 point mark by mid-2028.
The Nasdaq 100 Index, with its tech stocks, has by far outperformed the S&P 500 and the Dow Jones Index since its inception in 1985.
