Today we are going to talk about Nasdaq, which exceeded analysts’ expectations for revenue by more than 51% in the third fiscal quarter.
The latest report was published by Nasdaq on October 18. Manufacturing costs make up 35% of the revenue structure and gross revenue 65%. Over the past quarter, the company made a profit of $294M. And its market capitalization is now $32B.
Nasdaq is a financial company that owns 10 stock exchanges in the US and Europe, including the Nasdaq exchange of the same name. The company also calculates more than 40K stock indices. Among them, the most famous are the Nasdaq-100 and the Nasdaq Composite.
The company operates in the capital market industry. It was founded in 1971. In 2004, it was listed on the NASDAQ stock exchange, and in 2008 it was added to the S&P 500 index. For the past 26 years, the company has been headed by Adena Friedman and a team of experienced managers.
Nasdaq’s main competitors are CME Group, Intercontinental Exchange and Cboe Global Markets. As you can see from the table above, some of them are ahead of Nasdaq in terms of capitalization, but the company has a number of competitive advantages.
Nasdaq’s strengths are based on its flexibility in changing market conditions. A few years ago, the company announced that it would redirect resources to more promising areas, such as cloud services. As a result, over the past 3 years, the Capital Access Platforms revenue segment has grown by 30%. In addition, to strengthen its position in the industry, Nasdaq acquired software provider Adenza at the end of 2023. This was the company’s most expensive acquisition worth $10.5B.
Over the past three months, Nasdaq stocks have risen by +17%. At the same time, the financial sector, to which the company belongs, has grown by +12%, and the S&P 500 index by +10%. As you can see, Nasdaq stocks show better returns than the sector average.
