November 2018 — Movements in the SMB Software Index
November was a bumpy month for markets, which saw all the SMB Software Index and our various benchmark indices go through significant upswings and downswings. By the end of the month, the SMB Software Index was up a little over 4%, compared to 2% for the S&P 500 and Dow Jones, and just over 1.5% for the Nasdaq.
Drivers of Movement
The SCP SMB Software Index is a weighted based on the market capitalization of the 35 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.
The Top 5 constituents of the Index saw a bit of a shakeup this month, with Atlassian replacing First Data as a result of a 20.5% increase in Atlassian’s market cap. This was driven by a combination of strong earnings and the official launch of the next version of its Jira project management software. Square was in the red again this month after losing another 5% in market cap in November.
The Top Gainers and Losers for November
The biggest gainer of the month by far was LendingTree, which added nearly 34% to its market cap during the period. The biggest loser was Yelp, which lost a whopping 21.4%, driven by poor earnings announced during the month.
Here’s how all constituents stacked up in the month of November
There were more winners than losers amongst constituents of the SCP SMB Software Index in the month of November, a stark contrast to October, where only two experienced any gains.
You can follow the SurePath SMB Index in real time at: http://www.surepathcapital.com/smb-index
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