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

We came across a bullish thesis on Nasdaq, Inc. on Stay Invested’s Substack by Denis Gorbunov. In this article, we will summarize the bulls’ thesis on NDAQ. Nasdaq, Inc.’s share was trading at $98.71 as of January 28th. NDAQ’s trailing and forward P/E were 35.18 and 26.18 respectively according to Yahoo Finance.

Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. NDAQ is leveraging its partnership with Amazon Web Services (AWS) to transform from a traditional stock exchange into a high-margin financial technology company. By moving its Eqlipse platform—used for trading, clearing, and settlement—onto AWS, Nasdaq avoids the massive costs of building and maintaining its own data centers and instead pays only for the computing power it consumes. The integration not only supports Nasdaq’s internal operations but also allows the company to license its infrastructure to other exchanges in markets like South Africa and Mexico.

Additionally, AWS’s high-performance GPU scaling enables advanced analytics for institutional investors, including ESG data analysis, enhancing Nasdaq’s fintech capabilities. While risks exist—such as potential AWS outages or challenges related to Amazon not being a financial services company—Nasdaq’s profitable operations, strong balance sheet, and focus on new revenue streams provide resilience.

Its revenue mix spans Capital Access Platforms (42%), Financial Technology services (35%), Market Services including trading and clearing (22%), and other minor sources (1%). A key growth initiative is the extension of trading hours to 23/5, potentially expanding to 24/7 in the future. Longer hours are expected to increase demand for Nasdaq’s services but come with structural risks for retail investors, including wider bid-ask spreads, amplified price volatility, stop-loss hunting, and reduced quality of execution.

These factors make after-hours trading profitable for Nasdaq itself but challenging for individual traders. Overall, the AWS partnership and technological advancements position Nasdaq to capture high-margin fintech growth while mitigating infrastructure costs, creating a compelling long-term investment case, with the company effectively “owning the casino” rather than risking being a participant at unfavorable hours.

Previously, we covered a bullish thesis on Nasdaq, Inc. (NDAQ) by Magnus Ofstad in January 2025, which highlighted the company’s strong recurring revenue growth, technology integration, and global footprint. NDAQ’s stock price has appreciated by approximately 21.17% since our coverage due to continued adoption of data-driven solutions. Denis Gorbunov shares a similar thesis but emphasizes the AWS partnership and cloud-based Eqlipse platform, unlocking high-margin fintech growth.

Nasdaq, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held NDAQ at the end of the third quarter which was 58 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 time frame. If you are looking for an AI stock that is more promising than NDAQ and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.