The Nasdaq Now Dwarfs European Stock Market (NASDAQ:QQQ
published 31.07.2020 15:26
At the Nasdaq's forward P/E of around 38.5x, it is forecasted to produce $432 billion of earnings, or about 20% less than the Euro Stoxx despite having a combined market capitalization around 40% higher.
The Nasdaq did trail the Euro Stoxx 600 for 6 of 7 years from 2000 to the end of 2006 as the tech bubble deflated.
After all, the Euro Stoxx 600, represents roughly 90% of the combined market capitalization of not just the Eurozone, but stocks across the continent, including the United Kingdom, Switzerland, and the Scandinavian countries who had not recently adopted the single currency officially the year before.
While the tech-heavy Nasdaq had run higher, driven by investor mania for internet-related stocks, it was still worth less than the combined market capitalization of a pan-European stock index.
The total market capitalization of the Nasdaq today is more than 40% larger than this broad European gauge, a feat not reached during the 2000-era tech bubble.