January 2019 — Movements in the SMB Software Index
January marked both the beginning of both the new year and recovery since markets began their downwards slide in October. By the end of the month, the SMB Software Index was up about 12%, compared to 7% for the S&P 500, 8% for the Nasdaq, and 8.5% for the Dow Jones.
Drivers of Movement
The SCP SMB Software Index is a weighted based on the market capitalization of the 33 companies that are included in the index. The market cap of the top 5 companies accounts for more than half of the total market cap combined index and therefore, the movement of these 5 companies influence the SMB Index as a whole.
Square was the top performer among the top 5 this month, up over 27% during the period, followed by several months of relatively poor performance.
The Top Gainers and Losers for January
In January, the best performer of all constituents of the index was Marchex, which added over 50% to its market cap during the period. This was followed closely by First Data, which added over 45% to its market cap, driven by the announcement that it had been acquired by Fiserv.
Here’s how all constituents stacked up in the month of January
You can follow the SurePath SMB Index in real time at: http://www.surepathcapital.com/smb-index
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