May 2019 Movements in the SMB Software Index

SMB Index

JUN 11, 2019 - Danial Shaikh

May represented another slow month for the SurePath SMB Software Index, gaining just 1.8%. However, it compared favorably to the S&P 500 which lost nearly 6%, the Nasdaq which lost over 7%, and the Dow Jones which lost over 6%.

Drivers of Movement

The SCP SMB Software Index is a weighted based on the market capitalization of the 37 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.

After Shopify replaced Atlassian as a member of the top 5 last month, Atlassian made it back into the top 5, this time replacing Square. Square has had a relatively poor 2019 compared to the Index at large, having gained only 8% as of the end of May (though this has increased to over 20% as of this article’s publishing), compared to nearly 40% for the broader SMB Software Index, nearly 100% for Shopify, and over 40% for Atlassian.

The Top Gainers and Losers for May

In May, the best performer of all index companies was Atlassian, which grew ~16% during the period driven by an upgraded price target from Goldman Sachs. The poorest performer was, which lost over 60% in May after announcing that the US Postal Service would be renegotiating service agreements with several of reseller partners. This was after it announced that it would be ending its long-standing exclusive partnership with USPS in February. The stock is down nearly 80% this year.

Here’s how all index companies stacked up in May

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