NASDAQ Stock Has Limited Scope For Growth

NASDAQ Stock Has Limited Scope For Growth

Share to Linkedin NEW YORK CITY, UNITED STATES - 2020/02/20: A logo of the Nasdaq Stock Market seen in Midtown ... [+] Manhattan. (Photo by Alex Tai/SOPA Images/LightRocket via Getty Images) NASDAQ stock (NASDAQ: NDAQ), a global financial exchange group, gained roughly 25% - increasing from about $133 at the beginning of 2021 to around $165 currently, outperforming the S&P500, which grew 12% over the same period. The exchange's top-line has benefited from higher U. S. industry trading volumes in 2021, which is the main reason behind the favorable investor outlook toward the stock. There were two main factors behind the jump in trading volumes: First, the approval of the $1. 9 trillion stimulus package. Second, the higher level of engagement of retail investors. But is this all there is to the story? Not quite, despite the recent gains, Trefis estimates NASDAQ's valuation to be around $170 per share - slightly above the current market price - based on a key opportunity and one risk factor. The opportunity we see is an improved trajectory for NASDAQ's revenues over the subsequent quarters. The company's revenues for the full year 2020 increased by 32% y-o-y to $5. 6 billion, which translated into