How Important Is Nasdaq’s Market Technology Business To Its Stock?
Nasdaq (NASDAQ: NDAQ) reported $4.2 billion in total revenues for the full year 2019, declining by 0.4% (y-o-y) due to low volatility in cash equities and equity options market. However, net revenues remained relatively stable, thanks to 10% (y-o-y) growth in recurring revenues from non-trading segments. Notably, Nasdaq’s technology solutions business observed a 25%(y-o-y) growth, driven by the company’s acquisition of Cinnober even as it continued to grow deal volumes. Trefis highlights the key sources of Nasdaq’s revenues in an interactive dashboard along with our projections for 2020. While the Market Technology segment accounts for less than 10% of Nasdaq’s top line as of now, the segment can potentially grow at an annual rate of up to 10% over the coming years to double in size by 2025. A Quick Look At Nasdaq’ Revenues Nasdaq reported $4.2 billion in Total Revenues for full-year 2019. It includes four segments: Market Services: $2.6 billion in FY2019 (62% of Total Revenue...