Fintech
Nasdaq earnings outpace fintech sell-off, stocks soar By Reuters
By Jaiveer Shekhawat and Saqib Iqbal Ahmed
(Reuters) – Nasdaq shares topped Wall Street estimates on Thursday, boosted by strong demand for its products that help traders overcome compliance requirements and protect themselves from financial crime, sending its shares up about 5 percent.
The exchange operator, which has expanded beyond trading and listing and strengthened its fintech unit for more consistent growth, generated $420 million in fintech revenue during the quarter, up 79% from a year earlier.
Total net sales rose 25% to $1.16 billion, compared with the average analyst estimate of $1.13 billion, according to LSEG data. Adjusted earnings of 69 cents per share also beat expectations of 64 cents.
“The success was driven primarily by better-than-expected revenue in the financial technology sector,” Oppenheimer analyst Owen Lau said in a note.
“The stock could show strength today and we expect consensus to rise slightly after the print,” Lau said.
A total of 84 companies listed their shares on the Nasdaq during the quarter, up from 62 a year earlier, as the resilience of the economy also supported a surge in new listings on U.S. stock exchanges after a slowdown that lasted nearly two years.
The company said it expects further improvements on this front in the coming quarters.
“The current U.S. IPO pipeline suggests that stronger momentum is likely to emerge starting in the first half of 2025,” Chief Executive Officer Adena Friedman said on a conference call with analysts.
Initial public offerings have generally been fewer in number than global stock market activity this year, but with interest rate cuts expected around the world, bankers and investors are expecting more listings in the coming months.
U.S. equity paired-stock volumes jumped to $119.3 billion in the second quarter from $113.7 billion a year earlier. U.S. equity options volumes also rose to 42.1 million contracts from 39.2 million contracts, Nasdaq said.
Nasdaq shares last rose 5.7% to $66.29, on pace for their best day in about two years. For the year, the stock is up 8%, compared with a 6% gain in a peer index.