Key insights
- Erste Group initiated coverage on Nasdaq OMX Group Inc. (NDAQ) with a buy rating, citing the company's plan for extended trading hours starting December 2026. This initiative is expected to drive revenue growth in its Market Services segment. Despite a slight overvaluation according to InvestingPro, the firm believes NDAQ's strong growth prospects and profitability will support its upward trend. The article also notes NDAQ's recent Q3 earnings beat and increased investment in AI by high-frequency trading firms.
Investing.com - Erste Group initiated coverage on Nasdaq OMX Group Inc. (NASDAQ:NDAQ) with a buy rating on Thursday. The stock is currently trading at $105.60, near its 52-week high of $107.93, and has delivered a strong 25% return over the past year.
The research firm cited the company’s plan to introduce stock market trading on December 6, 2026, with a 23-hour trading day, five days a week.
The extended trading hours will expand global access to U.S.-listed stocks across international time zones, according to Erste Group analyst Hans Engel.
Erste Group said the initiative represents an important catalyst for further revenue growth in the Market Services segment.
The firm said the stock’s current valuation reflects the company’s strong growth prospects and high profitability, and expects the stock’s upward trend to continue in the medium term. According to InvestingPro analysis, NDAQ is currently slightly overvalued compared to its Fair Value estimate. The platform’s comprehensive Pro Research Report, available for NDAQ and 1,400+ US stocks, provides deeper insights into the company’s valuation and growth trajectory.
In other recent news, Nasdaq Inc. reported third-quarter 2026 earnings that exceeded Wall Street expectations. The company achieved a diluted earnings per share of $1.04 and revenue of $1.48 billion, surpassing analyst projections of $1.02 EPS and $1.47 billion in revenue. Additionally, Interactive Brokers has introduced a new feature allowing autonomous trading, enabling users to create AI partitions within their accounts to execute trades without manual approval. This feature supports a wide range of 75,000 global stocks, options, and ETFs. Meanwhile, high-frequency trading firms such as Jane Street and Hudson River Trading are significantly increasing their investments in computing power for AI, marking a shift from their previous focus on speed. These firms are building data centers, partnering with cloud providers, and supporting AI chip startups to enhance their processing capabilities. According to an executive from a major firm, the investment in computing power has increased by 10 to 20 times since the launch of ChatGPT in November 2022. Jefferies noted the continued expansion of AI-agent trading tools across major brokerage platforms, highlighting the growing importance of AI in the trading industry.
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