Internet Stocks To Lead NASDAQ To New Highs In 2015

The internet stocks are showing relative price strength after a year of price consolidation and will likely lead the NASDAQ to new highs in 2015.  The largest companies by market cap in the Dow Jones Internet Composite index are listed above.  Notice that Facebook (FB) and Google (GOOGL & GOOG) make up approximately 20% of the index alone.  Google has been moving sideways for the majority of 2014 and I think is modestly valued relative to other technology companies.  FDN is the largest ETF that tracks this index.

Akamai breaks out. Tech leadership expands.

What began as market leadership in biotechnology stocks quickly spread to internet stocks and is now perpetuating in the NASDAQ 100 mega cap stocks.  We are entering a period of broad based tech market leadership which may continue for the duration of this bull market that began in 2009.  It is important to note that both the biotechnology and the internet index has doubled in a 2 year time frame.

Facebook Explodes Higher On Very Heavy Volume

Facebook has exploded, up almost 28% today on VERY heavy volume.  There are days when the entire Toronto Stock Exchange trades less than half of the volume Facebook has traded today (and the day is not over).  LinkedIn is up strongly in sympathy.  QQQ and especially FDN are up as a result.(Disclaimer:  I own FDN and QQQ)

Facebook Up 17% After Hours, LinkedIn Trend Is Up, FDN Is The Best Way To Play Them Both

Facebook finally posted earnings results that beat estimates and will be rewarded by the market tomorrow.  However, its social networking cousin, LinkedIn, seems to be the better play.

Despite the fact LinkedIn is a fraction of Facebook's size,  it has far more predictable earnings and revenue growth data and is likely to continue its smooth growth in the future as it continues to implement more revenue generating service offerings to its members.

It is extremely hard to determine the likelihood of success of a given social network or high P/E multiple internet company.  FDN is an ETF that tracks the Dow Jones Internet Composite Index. Although it has a more modest MER of 0.60%, it is worth every penny over the long term.

QQQ Continues To Lag S&P 500. PerfChart QQQ SPY EEM XLF IWM MDY FDN IBB XIU

Mega cap tech stocks (QQQ) have been lagging the S&P 500 for most of the year, largely due to the poor performance of a few big names (i.e. AAPL, MSFT, INTC).  Biotechnology (IBB), on the other hand, is way out front.