Nasdaq Earnings: Index Business Continues to Deliver Strong Growth

Narrow-moat-rated Nasdaq reported decent second-quarter earnings, as the firm continues to benefit from strong momentum in its index and financial technology businesses. Net revenue increased 22% from last year to $1.15 billion, or 10% when adjusted for the acquisition of Adenza. On the other hand, diluted earnings per share fell 11% thanks to higher costs and share dilution from the same purchase. As we incorporate these results, we do not expect to materially alter our $64 fair value estimate, and we see the shares as modestly overvalued.