After a 15-year wait, Nasdaq (^IXIC) 5,000 is finally official. Although the composite still has a few points to go before reaching its previous record of 5,048 the foundation is in place for more upward momentum, says longtime trader Jon Najarian, co-founder of OptionMonster and a Yahoo Contributor. “I like the market here, I don’t think valuations are stretched,” he says.
Part of Najarian’s bullish stance ties into the smartphone explosion. “That connectivity is really key to a lot of what’s driving the Nasdaq,” observes Najarian. Apple’s (AAPL) iPhone is an obvious driver, along with the companies that manufacture memory. “The SanDisks (SNDK) of the world with the solid state memory and flash memory, that’s huge. Every cell phone is packed with it, every iPad or [Amazon’s] Fire HD (AMZN) tablet is packed with that stuff.”
The wireless revolution is just part of the story. The functionality of the internet is another driver. “In 2000, we were doing $4 billion worth of business online. Now the number is in the hundreds of billions of dollars,” says Najarian, who predicts continued growth as the world moves towards being 100% mobile. “Instead of you being tethered to your desk, walking around with the same kind of computing power now that you had on a desktop in 2000, that’s huge. It's great for those retailers. It's great for Uber, Facebook (FB) and Tinder.”