The only member of PNQI’s top-10 lineup to close at a new 52-week high Thursday was eBay (NasdaqGS: EBAY). On average, however, the other nine stocks are just 3.7% away from new 52-week or all-time highs. That number is skewed higher by Amazon (NasdaqGM: AMZN) being almost 12% below its 52-week high.
On the other hand, Google (NasdaqGM: GOOG), Priceline (NasdaqGM: PCLN), Netflix (NasdaqGM: NFLX) and Akamai (NasdaqGM: AKAM), a combined 23.4% of PNQI’s weight, all closed less than 1.3% below their 52-week highs. Given those short distances to new highs to cover, a significant percentage of PNQI’s weight and the ETF itself could be making new highs as soon as today.
While history shows sentiment can rapidly change on Internet stocks, the current environment has been favorable for PNQI and its constituents. QQQ’s top-10 holdings include just three stocks found in PNQI’s top-10 – Google, Amazon and Facebook (NasdaqGS: FB) – and those stocks combine for just 15.4% of QQQ’s weight. PNQI’s 2014 performance has been more than double that of QQQ.
PowerShares NASDAQ Internet Portfolio
Tom Lydon’s clients own shares of Amazon, Google, Facebook and QQQ.