Company Reports

Nasdaq’s exchange business continues to produce strong results as volatile markets lead to good trading volume industrywide, with its option exchanges in particular performing well. While trading volume growth has slowed, the increased prevalence of $0 commission trading platforms and a shift toward higher option volume should provide a persistent benefit to Nasdaq’s exchanges. However, the equity exchange business remains highly competitive, and Nasdaq has been steadily losing market share for years. We expect this pressure to continue as two new exchanges, MEMX and MIAX Pearl Equities Exchange, were launched in 2020, with MEMX expanding into options in 2023. Additionally, the Texas Stock Exchange was launched in 2026.

Nasdaq reported another strong set of earnings, as the firm benefited from both positive market conditions and better-than-expected solutions revenue. Net revenue increased 15% from last year to $1.5 billion, while diluted earnings per share increased to $0.90 from $0.79.

Nasdaq’s exchange business continues to produce strong results as volatile markets lead to good trading volume industrywide, with its option exchanges in particular performing well. While trading volume growth has slowed, the increased prevalence of $0 commission trading platforms and a shift toward higher option volume should provide a persistent benefit to Nasdaq’s exchanges. However, the equity exchange business remains highly competitive, and Nasdaq has been steadily losing market share for years. We expect this pressure to continue as two new exchanges were launched in 2020, MEMX and MIAX Pearl Equities Exchange, with MEMX also expanding into options in 2023. Additionally, the Texas Stock Exchange plans to launch in 2026.

Nasdaq reported strong first-quarter results as good trading conditions and impressive capital markets technology results drove a 14% increase in net revenue year over year to $1.4 billion. Adjusted earnings per share rose 22% to $0.96.

Nasdaq’s exchange business continues to produce strong results as volatile markets lead to good trading volume industrywide, with its option exchanges in particular performing well. While trading volume growth has slowed, the increased prevalence of $0 commission trading platforms and a shift toward higher option volume should provide a persistent benefit to Nasdaq’s exchanges. However, the equity exchange business remains highly competitive, and Nasdaq has been steadily losing market share for years. We expect this pressure to continue as two new exchanges were launched in 2020, MEMX and MIAX Pearl Equities Exchange, with MEMX also expanding into options in 2023. Additionally, the Texas Stock Exchange plans to launch in 2026.

Nasdaq reported strong fourth-quarter earnings, with high market volatility and valuations boosting trading and index revenue. Net revenue increased 13.4% from last year to $1.39 billion, while diluted earnings per share rose to $0.90 from $0.61.

Nasdaq reported strong third-quarter earnings as the firm benefits from high market activity and rising valuations. Adjusted net revenue increased 11% to $1.3 billion. Meanwhile, adjusted diluted EPS rose 19% to $0.88 thanks to the firm's cost-savings efforts.

Nasdaq’s exchange business continues to produce strong results as volatile markets lead to good trading volume industrywide, with its option exchanges in particular performing well. While trading volume growth has slowed, the increased prevalence of $0 commission trading platforms and a shift toward higher option volume should provide a persistent benefit to Nasdaq’s exchanges. However, the equity exchange business remains highly competitive, and Nasdaq has been steadily losing market share for years. We expect this pressure to continue as two new exchanges were launched in 2020, MEMX and MIAX Pearl Equities Exchange, with MEMX also expanding into options in 2023. Additionally, the Texas Stock Exchange plans to launch in 2026.

Nasdaq reported strong second-quarter earnings as the firm continues to benefit from high market activity. Net revenue increased 12% to $1.3 billion. Meanwhile, adjusted diluted EPS rose 24% to $0.85 thanks to firm's cost-savings efforts following the acquisition of Adenza and its reduced debt load.

Invesco filed a preliminary proxy on July 17 to shift its flagship QQQ exchange-traded fund, which tracks the Nasdaq-100 index, from a unit investment trust to an open-end fund. If shareholders approve, Bank of New York Mellon will still provide asset servicing but no longer be a trustee.

Nasdaq reported strong first-quarter earnings, with net revenue increasing 10.7% from last year to $1.2 billion. Earnings per share increased to $0.69 from $0.41 last year, thanks to increased leverage against its fixed costs and the firm's cost-saving efforts following the acquisition of Adenza.

Nasdaq’s exchange business continues to produce strong results as volatile markets lead to good trading volume industrywide, with Nasdaq's option exchanges in particular performing well. While trading volume growth has slowed, the increased prevalence of $0-commission trading platforms and a shift toward higher option volume should provide a persistent benefit to Nasdaq’s exchanges. However, the equity exchange business remains highly competitive, and Nasdaq has been steadily losing market share for years. We expect this pressure to continue as two new exchanges were launched in 2020, Members Exchange and the MIAX Pearl Equities Exchange, with the Members Exchange also expanding into options in 2023. Additionally, the new Texas Stock Exchange plans to launch in 2026.

Nasdaq reported decent results with net revenue increasing 10% to $1.2 billion. Earnings per share increased 72% to $0.61. However, the quarter benefited from an easy comparison as last year's results featured heavy integration costs associated with the purchase of Adenza.

Direct indexing in some form has existed for decades, but advances in technology have recently broadened its availability. With its arguable superiority to existing passive index funds and exchange-traded funds, investment industry leaders are positioning for the opportunities and threats it unleashes. While there have already been hundreds of billions of dollars dedicated to direct indexing offerings, numerous firms such as BlackRock and Morgan Stanley have acquired direct indexing capabilities in anticipation of further rapid 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.

Nasdaq’s exchange business continues to produce strong results as volatile markets lead to good trading volume industrywide, with Nasdaq's option exchanges in particular performing well. While trading volume growth has slowed, the increased prevalence of $0-commission trading platforms and a shift toward higher option volume should provide a persistent benefit to Nasdaq’s exchanges. However, the equity exchange business remains highly competitive, and Nasdaq has been steadily losing market share for years. We expect this pressure to continue as two new exchanges were launched in 2020, Members Exchange and the MIAX Pearl Equities Exchange, with the Members Exchange also expanding into options in 2023. Additionally, the new Texas Stock Exchange plans to launch in 2025.

Narrow-moat-rated Nasdaq reported solid second-quarter earnings as strength in its financial technology and index businesses more than offset unimpressive growth in listing and market service revenue. Net revenue increased 25% from last year, or 10% when adjusted for the acquisition of Adenza, to $1.16 billion. Meanwhile, diluted earnings per share decreased 30% from last year to $0.38 due to acquisition-related costs. As we incorporate these results, we do not expect to materially alter our $60 fair value estimate for Nasdaq. We see the shares are roughly fairly valued.

Narrow-moat-rated Nasdaq reported decent first-quarter earnings that came in a bit below our expectations as strong results from the firm’s index segment were partially offset by weakness in its exchange business. Net revenue increased 22% from last year, or 6% when adjusted for the acquisition of Adenza. Adjusted diluted earnings per share fell to $0.63 from $0.69 last year as lower trading revenue and share dilution from the Adenza acquisition weighed on results. As we incorporate these results, we do not plan to materially alter our $60 fair value estimate, and we see the shares as fairly valued.

We are increasing our fair value estimate for Nasdaq to $60 from $55, which is equivalent to 28 times our projected 2024 earnings. Around $1 of our positive adjustment comes from earnings since our last update. The rest of the increase comes from higher near- to medium-term revenue growth projections as Nasdaq benefits from improving market conditions and strong secular growth in its new software businesses.

Nasdaq’s exchange business continues to produce strong results as volatile markets lead to good trading volume industrywide, with Nasdaq's option exchanges in particular performing well. While we expect trading to normalize over time, the increased prevalence of $0-commission trading platforms and a shift toward higher option volume should provide a persistent benefit to Nasdaq’s exchanges. However, the equity exchange business remains highly competitive, and Nasdaq has been steadily losing market share for years. We expect this pressure to continue as two new exchanges were launched in 2020, Members Exchange and the MIAX Pearl Equities Exchange, with the Members Exchange also expanding into options in 2023.