Chart o’ the Day: Nasdaq Composite since 1986

Tesla is adding another few billion dollars to its market cap this morning on news it will sell 35,000 cars this year. Ford, meanwhile, sold 45,000 F-150s in January. Tesla’s $30 billion enterprise value implies their having the entire electric car business to themselves forever. Okay sure.

In the meanwhile, Facebook announced a deal to buy WhatsApp for $19 billion. They’re getting 450 million users – whose single defining, unifying factor as a “network” is that they went out of their way to avoid paying wireless carriers for text messaging.

This got me thinking about the Nasdaq in general and the amounts we’re willing to pay up for growth stocks. It makes perfect sense that we’ve arrived at this point again – in a world of stagnant global growth, companies that can grow become the most highly sought-after. Money managers will pay anything for the true, pure growth stocks simply because there are not that many of them. Hope it continues forever (but I already know it won’t).

The thing is, the economy is improving and the national mood is lifting. Confidence is returning with labor markets beginning to tighten (unemployment rate for college grads approaching 3%) and rising wages – for the first time in forever – are probably imminent. These facts don’t justify most of the hyperbolic moves in the large Nasdaq growth stocks – but they serve as the backdrop against which they are taking place.

Here’s the Nasdaq Composite going back to 1986, for a frame of reference:



Party on.

Read Also:

Mindblowing Stats about Facebook’s Buyout of WhatsApp (TRB) 

Real Consumer Confidence Returns (TRB)

Bubble Guppies (TRB)


This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. navigate to this website commented on Oct 07

    … [Trackback]

    […] Info on that Topic: […]

  2. DevOps consulting commented on Nov 02

    … [Trackback]

    […] Here you will find 25365 additional Info to that Topic: […]

  3. Types of regression testing commented on Dec 01

    … [Trackback]

    […] Info to that Topic: […]

  4. hermaphrodite sex doll jasmine 2016 commented on Jan 01

    … [Trackback]

    […] Find More here to that Topic: […]

  5. buy Dexedrine online commented on Jan 13

    … [Trackback]

    […] Find More here on that Topic: […]