New York City exchange operator Nasdaq tops quarterly profit estimate as trades surge



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New York City exchange operator Nasdaq tops quarterly profit estimate as trades surge

On Wednesday, Nasdaq Inc., the New York City-based exchange operator, had topped analysts’ estimates for quarterly profit and revenues during its fiscal first quarter of the year that ended on March 31, as an unprecedented scale of trading surge of tech-associated growth stocks alongside a Reddit stock discussion group-led retail buying frenzy drawing in thousands of amateur traders to cash in on shares likes of Gamestop and AMC Entertainment alongside others, which were heavily shorted by the institutional traders, bode well for the 50-year old exchange operator.

Aside from that, data from Factset had revealed that several waves of retail buying bonanza on tech-associated growth stocks, that in effect had heavily punished the Wall St. traders and hedge funds which were betting against them, led to a 20 per cent jump in Nasdaq’s market service unit to $338 billion in the latest quarter.

Nasdaq tops profit estimates as main street traders flock tech stocks

On top of that, according to Nasdaq Inc.’s quarterly earnings’ report for first quarter of the year, the exchange operator had reported a net earning of $1.96 per share on an adjusted basis, beating an analysts’ estimate of $1.74 per share, IBES data from Refinitiv had revealed.

Aside from that, Nasdaq had also been quoted saying that the New York City-headquartered exchange operator had witnessed 196 SPAC (Special Purpose Acquisition Company) debuts in the latest quarter alongside 79 operating companies, while Nasdaq Inc.’s net revenue surged by 21 per cent to $851 million excluding transaction-based spending compared to the same time a year earlier.

Meanwhile, following the announcement, Nasdaq Chief Executive Officer Adena Friedman said in a post-earnings conference call with the reporters, “We're hoping with a second partner to kind of hopefully bring that into the U.S. in coming months”.