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Based in New York, Nasdaq, Inc. (NDAQ) is a global financial services company that provides trading, clearing, marketplace technology, regulatory, securities listing, information, and public and private company services. Valued at a market cap of $43.3 billion, the company operates one of the world's largest electronic stock exchanges, the Nasdaq Stock Market.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and Nasdaq fits the label perfectly, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the financial data & stock exchanges Industry. Its key strengths lie in its advanced trading platforms, market data services, and regulatory technology, which enhance transparency and efficiency in global financial markets. Nasdaq’s diversified business model, which includes index licensing, analytics, and anti-financial crime solutions, provides stable revenue streams beyond trading. Additionally, its strategic focus on AI-driven insights, cloud-based solutions, and ESG initiatives positions it at the forefront of financial innovation.
This financial services company touched its 52-week high of $84.15 on Feb. 6 and is currently trading 10.5% below it. Shares of Nasdaq have declined 2.8% over the past three months, lagging behind the broader Financial Select Sector SPDR Fund’s (XLF) 2.9% gain during the same time frame.
Moreover, on a YTD basis, shares of NDAQ are down 2.6%, compared to XLF’s nearly 1.5% rise. Nonetheless, in the longer term, Nasdaq has rallied 24.9% over the past 52 weeks, outperforming XLF’s 20% uptick.
To confirm its recent bearish trend, the Nasdaq began trading below its 50-day moving average in early March. Nevertheless, it has remained above its 200-day moving average since the past year, with slight fluctuations.
On Jan. 29, shares of Nasdaq closed up marginally following its Q4 earnings release. It reported adjusted EPS of $0.76 per share, which advanced 5.6% from the year-ago quarter and exceeded the consensus estimates of $0.75. Total revenue surged 23.1% year-over-year to $2 billion, while adjusted revenue came in at $1.2 billion, aligning with Wall Street’s forecast. Nasdaq’smarket services segment achieved record fourth quarter and full-year net revenue, driven by strong performance in U.S. cash equities. Additionally, robust growth across all reportable segments and an approximate 7% year-over-year increase in annual recurring revenue (ARR) further contributed to the positive market reaction.
NDAQ has outpaced its rival, Cboe Global Markets, Inc.’s (CBOE) 19.6% gain over the past 52 weeks but has lagged behind CBOE’s 12.4% rise on a YTD basis.
Despite Nasdaq’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 20 analysts covering it, and the mean price target of $90.56 suggests a modest 20.3% premium to its current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
