Wednesday, February 1, 2023
HomeMarketNasdaq Stock Tumbles on Decline in Index Revenue

Nasdaq Stock Tumbles on Decline in Index Revenue

Shares of Nasdaq were falling sharply Wednesday. (Photo by Michael M. Santiago/Getty Images)

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Nasdaq
shares were sliding Wednesday after the company posted a slight earnings miss and a year-over-year decline of 11% in index revenue for its fourth quarter.

The decline was largely caused by lower assets under management in exchange-traded products linked to its indexes, the company said.

Nasdaq
(ticker: NDAQ), which owns the second-largest U.S. stock exchange, also posted fourth-quarter adjusted earnings of 64 cents a share, while Wall Street had expected 65 cents, according to FactSet. 

“In our Index business, we saw revenue decreased by 11% vs. the prior-year period, primarily due to lower average AUM and exchange-traded products linked to Nasdaq indices, partially offset by higher revenues related to futures trading linked to the Nasdaq-100 Index,” CEO Adena Friedman said on a conference call with analysts.

Shares of Nasdaq were falling 7.8% on Wednesday. The stock’s largest percentage decline was March 23, 2020, when it fell 9.5%, according to Dow Jones Market Data. It had declined as much as 9.6% earlier in the session.

Despite the revenue decline, management was upbeat about the future.

“We delivered another year of strong growth against an uncertain macroeconomic backdrop, illustrating the strength of our diversified business and our ability to deliver on our longer-term objectives. As we look to 2023, our new corporate structure positions us to deliver greater liquidity, transparency, and integrity solutions to our clients throughout the financial system,” Friedman said in a press release.

Write to Emily Dattilo at emily.dattilo@dowjones.com

Credit: marketwatch.com

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