A Volatile Stock Market Is Still Great for Nasdaq
While 2020 has been a lousy year for the financial stocks in general, the stock exchanges have held up reasonably well, outperforming the banks and the real estate investment trusts. Despite a tough economic environment, initial public offerings (IPOs) have been strong, and commission-free trading platforms like Robinhood have contributed to increased volumes.
Nasdaq (NASDAQ: NDAQ) recently announced strong third-quarter earnings. Can the party continue?
Nasdaq reported a 13% increase in revenue for the third quarter, driven almost exclusively by organic growth. Net market services revenue (less rebates and fees) increased 15%. Earnings per share increased 77% to $1.61 per share. Operating leverage, which occurs when revenue increases much faster than costs, was a big contributor to the increase in earnings per share.
Source Fool.com
