Nasdaq, Inc. is a global technology company that provides data, analytics, infrastructure, software, and other services to capital markets and other industries worldwide. Nasdaq was previously an acronym for ‘National Association of Securities Dealers Automated Quotations.’ The company is headquartered in New York City and was founded in 1971 by Gordon Macklin. Nasdaq offers its diverse services via four core business segments: Market Technology, Investment Intelligence, Corporate Platforms, and Market Services.
Nasdaq, Inc. is best known as the operator of the Nasdaq Stock Market, which was the first-ever electronic exchange for buying and selling securities. Nasdaq is the second-largest stock exchange in the world by market capitalization (slightly behind the NYSE) and currently lists over 3300 companies. Nasdaq has been a preferred exchange for technology companies; top names such as Amazon, Alphabet, Meta, Apple, Netflix, PayPal, and Tesla are listed on the exchange. Nasdaq also operates two other exchanges in the US and seven in Europe. Its products and services are utilized by over 100 companies in more than 50 countries around the world. Electronic trading may be the standard these days, but it was revolutionary when Nasdaq pioneered it in the early 1970s when floor trading was mainstream. Nasdaq has continued to carry the reputation of an astute innovator, but the company has also used the M&A pool to advance its growth. Its major acquisitions over the years include GlobeNewswire, Globe Technologies, and Verafin. Its most targeted sectors for strategic acquisitions are financial services and business services. Nasdaq has a stable business that generates attractive subscription revenues through the SaaS (software-as-a-service) business model, but its product portfolio expansion also promises sustainable growth into the future.
Nasdaq, Inc.’s stock started trading publicly in 2002. The company is listed on Nasdaq under the ticker symbol NDAQ (NASDAQ: NDAQ Price). The NDAQ stock is categorized in the Financial Services sector, under the Financial Data & Stock Exchanges industry.
NDAQ Stock History
Nasdaq has never implemented any stock split in its history, but the company has announced plans to seek approval for a 3-for-1 stock split in 2022. NDAQ stock traded at circa $10 in mid-2002, and after a period of trending sideways, it picked upward momentum in late 2004. By late 2005, the stock broke above $40 but it entered another long-term period of sideways trending and price stagnation.
The Nasdaq Inc. share price only managed to conclusively break above $50 in early 2015. Since then, it has largely sustained a steady upward trajectory. NDAQ broke above $100 in mid-2019, and above $200 in late 2021. The Nasdaq Inc stock price printed its all-time high at circa $215 in November 2021. The stock has since witnessed a pullback and currently trades at around $165.
In terms of the Nasdaq Inc stock dividend, Nasdaq’s steady cash flows have seen the company offer sustainable dividends over the years. The company is a consistent dividend payer, and currently averages an annual yield of 1.44%. This marks the stock as very attractive in delivering capital gains via both higher valuations and regular income payments.
How to Trade Nasdaq Stock
Here are some of the factors to consider when trading NASDAQ Inc. shares:
- Regulatory and Legislative Issues
Nasdaq operates in an industry that is always under the watch of regulators and legislators. Regulatory and legislative changes are a huge source of risk for Nasdaq in all the different jurisdictions where the company has operations and strategic partnerships. For instance, in Europe, regulations such as EMIR and MiFID II have impacted how Nasdaq structures and operates its clearing business in the region.
Nasdaq faces plenty of competition for all the different products and services that it provides. The company’s main competitor is without doubt Intercontinental Exchange (the parent company of NYSE), which competes with Nasdaq locally and abroad. Other competitors in the US are CBOE and MEMX. Abroad, Nasdaq competes for listings and other exchange companies such as London Stock Exchange and multiple other national exchanges that are preferred by companies in their local jurisdictions. Competition is based on pricing, reputation, functionality, system stability, technological innovations, and execution speed.
- Underlying Economic Conditions
NDAQ stock is very sensitive to underlying economic conditions. Companies are most likely to pursue listing and subscribe to other Nasdaq services during a period of economic expansion. The company’s business is negatively impacted during periods of contraction, and this reflects in its stock price.
- Periodic Earnings Reports
The Nasdaq fiscal year runs from January 1st to December 31st. The company releases periodic earnings reports to update its investors on the state of its business. Some of the metrics to consider include gross revenue, segment earnings, expense and tax guidance, as well as business updates such as acquisitions and partnerships. Positive reports can inspire higher NDAQ prices, whereas negative reports can trigger lower stock prices.
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