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The Relationship Between Stock Exchanges and Indices [Chart]

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The Relationship Between Stock Exchanges and Indices [Chart]

The Relationship Between Stock Exchanges and Indices [Chart]

Plotting almost 5,000 U.S. Large Caps on the NYSE, NASDAQ, S&P 500, and DJIA

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

The NYSE and NASDAQ are the two largest stock exchanges in the world by market capitalization. However, what is their relation to major indices such as the S&P 500, S&P 100, and the Dow Jones Industrial Average?

Today’s chart breaks down the composition of the 4,500+ large cap stocks that are traded on the NYSE and NASDAQ, showing how the indices are currently derived. (For another refresher, check out our post on the difference between the Dow, S&P 500, and the NASDAQ.)

The S&P 500, founded in 1923, is considered one of the best overall indicators of the U.S. stock market. Composed of 118 companies from the NASDAQ and 382 companies from the NYSE, it represents the 500 companies with the highest market capitalizations that have common stock listed on either exchange. The S&P 500 is a capitalization-weighted index with components weighted based on the total market value of their outstanding shares. The larger the company, the more the impact it will have on determining the price of the overall index.

The S&P 100 is similar to the S&P 500, but it is composed of the 100 largest companies on the market, with 79 from the NYSE and 21 from the NASDAQ.

Lastly, the Dow Jones Industrial Average is made up of 30 stocks, with 26 based on the NYSE and 4 based on the NASDAQ. The Dow ensures that it picks companies from every industry, while the S&P 100 picks the 100 largest companies by market capitalization. That’s why Travellers Companies Inc., at a market cap of $34 billion, is the only company on the Dow that is not on the S&P 100.

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Chart of the Week

The eSports Boom, and the Numbers Behind the Sector’s Explosive Growth

Everything you need to know about the eSports Boom, including the sector’s rapid growth, massive prize pools, and the most valuable eSports companies today.

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The oldest professional sport teams can trace their start back to the mid-19th century, a period when casual past times such as baseball or football transitioned into more organized leagues.

Since this tipping point, pro sports has thrived around the world, and the business of sports has evolved into a multi-billion dollar ecosystem for teams, leagues, players, merchandisers, sponsors, broadcasters, and event spaces.

Today, this evolution still continues – and it is being driven by the emergence of eSports (electronic sports), an exciting frontier for fans and business alike.

eSports Extravaganza

Today’s chart breaks down the eSports boom, including data on the sector’s rapid growth, prize pools, and the most valuable eSports companies today.

Visualizing the eSports Boom, and the Numbers Behind Its Explosive Growth

Despite having a reputation in the media and in popular culture as being on the fringes, it is clear that gaming is now a truly mainstream phenomenon.

In fact, the global gaming industry has now eclipsed $135 billion in revenue worldwide – a figure that is twice as much as the film and music industries combined.

With hundreds of millions of avid fans around the world, demand to watch the most elite gamers has reached a fever pitch – and now, it’s not uncommon to see sold-out arenas, big name sponsorship deals, and massive prize pools in the name of eSports.

Defining the eSports Ecosystem

Like any professional league, eSports creates the foundation for an entire ecosystem of opportunities.

Players
Players are central to the ecosystem, since they are the stars and they have their own personalities. One famous star is Kuro Takhasomi (KuroKy), who has brought in a whopping $4.2 million in prize money from Dota 2 tournaments so far. He has earned more than any other player in eSports.

Teams
Because the games played are mostly team-based, there is a crucial element of teamwork involved. eSports franchises are currently selling for millions of dollars. It’s worth noting that these franchises don’t just employ players – they also hire staff that can better ensure the success of players, such as coaches, trainers, and personal chefs.

Games and Developers
Some of the most important games in the eSports world right now include: Dota 2, Counter-Strike, League of Legends, Overwatch, Fortnite, and Call of Duty.

Competitions
Leagues and tournaments can offer massive prize pools for players. The biggest single pool so far was $25.5 million, offered for a Dota 2 tournament in 2017 (“The International”). It’s the second-largest prize pool offered in any kind of sport, behind the U.S. Open (tennis).

Organizers
Running eSports events is big money, and organizers of events can tap into sponsorship and fan revenue. Sometimes game publishers will organize the events, but third-party ones also exist in the ecosystem.

Sponsors
Sponsors like Coca-Cola, Intel, and Mercedes-Benz have shelled out millions of dollars to sponsor events and reach the massive audiences associated with eSports. In more recent news, SAP signed a deal to sponsor one of the biggest names, Team Liquid.

Broadcasters
Broadcasters, both traditional and online (YouTube, Facebook Live, Twitch, etc.), are also in to get a part of the action. Recently, game developer Blizzard signed a broadcasting deal with Disney to broadcast Overwatch League playoffs on ESPN, ABC, and Disney XD.

What do you think is the most exciting part of the eSports boom, and why?

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Chart of the Week

Visualizing the Unicorn Landscape in 2019

Breaking down the world’s 326 unicorns – privately-held startups valued at over $1 billion – by country, sector, and valuation.

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Visualizing the Unicorn Landscape in 2019

It was only six years ago that venture capitalist Aileen Lee coined the term “unicorn” to describe any privately-held startup worth $1 billion or more.

At the time, such valuations were so rare that they deserved a special name – but since then, it’s fair to say that the landscape has shifted dramatically. The startup boom intensified, and capital flowed into private companies at an unprecedented pace.

In recent times, unicorns have multiplied more like rabbits, and investors have propped up the combined value of the world’s 326 unicorns to the tune of $1.1 trillion.

Breaking down the World’s 326 Unicorns

Today’s chart uses data from the Unicorn Tracker created by CB Insights, and it breaks down the unicorn landscape by sector, valuation, and country.

Let’s start by looking at the biggest unicorns currently in existence:

RankCompanyValuation ($B)CountrySector
#1Toutiao (ByteDance)$75ChinaMedia
#2Uber$72United StatesOn-Demand
#3Didi Chuxing$56ChinaOn-Demand
#4WeWork$47United StatesOther
#5JUUL Labs$38United StatesOther
#6Airbnb$29United StateseCommerce
#7Stripe$23United StatesFintech
#8SpaceX$19United StatesOther
#9Epic Games$15United StatesOther
#10GrabTaxi$14SingaporeOn-Demand
Note: data is current as of May 3, 2019

ByteDance is the world’s largest unicorn at a $75 billion valuation. The company owns Toutiao, a popular machine-learning enabled content platform in China that customizes feeds based on a user’s reading preferences. It also owns video sharing platform Tik Tok.

Experts are estimating that over 100 unicorns could IPO in 2019, including Uber and Airbnb from the above list.

So far this year, Lyft and Pinterest have already hit the public market – and another recent unicorn to IPO was conferencing platform Zoom Video, which has seen shares increase 120% in price since its impressive mid-April debut.

Unicorns by Sector

The two most common sectors for unicorns are Internet Software Services and E-commerce.

Sector# of UnicornsValuation ($B)
Total326$1,086 billion
Internet Software Services82$153
e-commerce44$129
Fintech32$94
Healthcare30$76
On Demand23$200
Hardware14$56
Data analytics12$27
Social11$27
Autotech11$23
Media8$89
Travel Tech7$11
Cybersecurity7$15
Other45$186
Note: data is current as of March 2019

However, as you can see, the segment most valued by investors is On-Demand, which includes companies like Uber, Didi Chuxing, and DoorDash.

Unicorns by Geography

Nearly half of the world’s unicorns come from the U.S., but China also has an impressive roster of highly valued startups.

Country# of Unicorns%
Total326
USA15647.9%
China9428.8%
UK175.2%
India134.0%
Germany82.5%
South Korea61.8%
Rest of World329.8%
Note: data is current as of March 2019

Strangely, outside of the six major countries listed above, the rest of the world only combines for a measly 32 unicorns – less than 10% of the global total.

Unicorns by Valuation

Seven unicorns – including Uber, WeWork, Airbnb, and ByteDance – account for almost 30% of all of the value of the entire landscape.

Valuation Range# of UnicornsValue ($B)% of Value
 Total326$1,086
$20+ billion7$32129.5%
$10-20 billion13$15113.9%
$5-10 billion26$15314.1%
$1-5 billion280$46142.5%
Note: data is current as of March 2019

The bottom of the pyramid ($1-5 billion in valuation) holds 280 companies. Added together, they are worth $461 billion, which is equal to 42.5% of the unicorn total.

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