Nasdaq, Inc. (NDAQ): A Bull Case Theory

We came across a bullish thesis on Nasdaq, Inc. (NDAQ) on Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on NDAQ. Nasdaq, Inc. (NDAQ)’s share was trading at $81.46 as of Jan 27^th. NDAQ’s trailing and forward P/E were 48.89 and 25.91 respectively according to Yahoo Finance.

Nasdaq Inc. (NDAQ) presents a compelling investment opportunity, driven by its strong growth in recurring revenues, innovative technology integration, and global reach. The company reported an impressive Annualized Recurring Revenue (ARR) of $2.74 billion as of Q3 2024, reflecting a 31% year-over-year increase. This growth underscores Nasdaq’s successful transition from a transactional exchange model to a diversified technology and data-driven enterprise, reducing reliance on trading fees. Notably, Nasdaq’s innovative focus, such as incorporating AI into its market surveillance technology, has significantly enhanced the efficiency of detecting market manipulation and insider trading, reducing investigation times by 33% while improving outcomes.

Geographically, Nasdaq boasts a strong footprint in Scandinavia, the Arabian Peninsula, and the U.S., providing a well-diversified revenue base. Its leadership in integrating advanced analytics and compliance solutions aligns with increasing regulatory scrutiny and the demand for data-driven decision-making in financial markets. Compared to its peers, Nasdaq’s emphasis on recurring revenue and cutting-edge technology positions it as a leader in adapting to evolving market needs.

With the global shift toward data monetization and Nasdaq’s focus on innovation and compliance, the company stands out as a resilient growth play. Its solid financial performance and strategic positioning offer investors a promising long-term investment with strong upside potential.

Nasdaq, Inc. (NDAQ) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held NDAQ at the end of the third quarter which was 37 in the previous quarter. While we acknowledge the risk and potential of NDAQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NDAQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.