American Electronic Stock Trader Nasdaq (NASDAQ:NDAQ) the stock has crashed with the benchmarks as it has fallen (-22%) since the start of the year. Not to be confused with the Nasdaq 100 Exchange Traded Fund (NASDAQ: QQQ) which is composed of the weighted average value of its 100 underlying stocks, the Nasdaq is an operational activity in itself. However, NDAQ performance tends to mirror QQQ performance. The Nasdaq offers compliance services and tools outside of listing services on its three exchanges, including the NASDAQ, Philadelphia and Boston exchanges. It mostly benefits from trading volumes in the market which collect fees on transactions as a toll. Markets are experiencing high volatility resulting from interest rate hikes to combat high inflation, supply chain and labor shortages as well as the Russian conflict in Ukraine. The uncertain landscape has slowed client capital raising activities like IPOs. However, the Company is taking advantage of uncertain market conditions to monitor financial crime solutions with the recently acquired Verafin. Its ESG advisory and reporting solutions help companies navigate the ESG environment. The stock trades at 20X forward earnings, offering a stable dividend yield of 1.54%. Cautious investors looking for exposure to a major stock index player can watch for opportunistic pullbacks in Nasdaq stocks.
Publication of results for the first quarter of fiscal year 2022
On April 20, 2022, Nasdaq released fiscal 2022 first quarter results for the quarter ending March 2022. The company reported earnings per share (EPS) of $1.97 versus consensus estimates for analysts $1.95, beating $0.02. Revenue rose 4.8% year over year (YoY) to $892 million, missing analyst estimates for $892.18 million. Net revenues reflect a positive impact of $51 million from organic growth and an increase of $4 million from the net impact of Verafin acquisitions less (-$8 million) a decrease in foreign exchange rates. The company cut its fiscal 2022 non-GAAP operating expense guidance to a range between $1.7 billion and $1.76 billion and expects its non-GAAP tax rate will be between 24% and 27%. The Company is also seeking a 3-for-1 stock split after approval and has increased its dividend to $0.60 per share.
Takeaways from the conference call
Nasdaq CEO Adena Friedman assured analysts the company had minimal exposure to Russia and was strongly committed to humanitarian efforts to support those in need. She continued to point out that markets were navigating through tumultuous times with rising interest rates, geopolitical tensions, global supply chain disruptions impacting sentiment. Negative sentiment halted capital raising activities like IPOs. The decline in the index’s market capitalization was partially offset by a high volume of futures contracts and entries into index products. The Nasdaq bolstered its anti-financial crime technology business with the acquisition of Verafin. She noted, “By bringing together all of Nasdaq’s financial crime solutions, including Verafin and our market and trade monitoring solutions under the leadership of Jamie King, CEO and co-founder of Verafin, we have an incredible opportunity to maximize these synergies between products. . We are excited to have Jamie as the new Executive Vice President of Nasdaq’s ASC business as he leads the future of Nasdaq’s high-impact, high-growth solutions that focus on fighting crime and guarantee of the integrity of the financial sector.
NDAQ Opportunistic Withdrawal Levels
Using the rifle charts over weekly and daily time frames provides an accurate view of the landscape for the NDAQ stock. The weekly Rifles chart peaked near $211.27 Fibonacci level (fib). Shares tumbled from there down and rolled around the $161.55 fib, until earnings pushed shares back down. The weekly Rifle chart breakdown triggered on the reverse pup as the Stochastic moved back down. The weekly resistance of the 5-period moving average (MA) drops to $173.62, followed by the 15-period MA at $173.72. The weekly lower Bollinger Bands sit at $145.67. The weekly 200-period MA support lies at $128.40. The weekly 50-period MA resistance sits at $186.55. . The weekly weak market structure (MSL) buy triggers on a break above $173.73. The daily Rifle chart is in an active downtrend with resistance on the downside at the 5-period MA at $161.66, followed by the 15-period MA at $172.17 and the 50-period MA at 173. $.45. The daily BB lower sits at $151.51. The daily 200-period MA lies at $189.45 and the daily upper BBs lie above $198.03. The daily stochastic has formed a full swing from the 90 down through the 10 band as it halts for a potential crossover or slide. Prudent investors can look for opportunistic pullback levels at the $153.39 fib, $151.53 fib, $145.40 fib, $142.75, $137.64 fib, $131.04 fib and the $125.24 fib level. The upward trajectories range from the $178.62 fib to the $199.15 fib level.