Since it’s March low the Technology SPDR has more than doubled. But what does that mean for the tech heavy Nasdaq? Find out from CEO Bob Greifeld!
There’s some good new and some bad news.
First the good news. March set a record for trading volume, with the number of transactions even higher than they were in October, the steepest phase of the selloff. It seems big money is coming off the sidelines afraid to miss the next leg higher. And the more transactions, the merrier for exchanges such as Nasdaq.
Now the bad news. The Nasdaq's market share has slipped since October as rivals including the New York Stock Exchange have won customers by driving down trading fees. Less market share equals lower profits.
And that’s exactly what the Nasdaq revealed in their quarterly report released Thursday. Nasdaq reported 94 million, or 44 cents per share, compared with $121 million, or 69 cents per share, in the same quarter a year earlier.
That’s a decline of 22 percent in the first quarter.
Nasdaq chief executive, Robert Greifeld, calls the trend "obviously disappointing," and says, "we clearly have to do a better job."
However, there’s a little more good news, the decline was better than expected and Nasdaq managed to beat the Street by a penny.
Part of the weakness stems from the fact that there have been far fewer IPOs in this environment. However, there are now 98 initial public offering applications in Nasdaq queue, Greifeld says, which could bode well going forward. Still, analysts see their current losses as worrisome.
To see our full interview with Robert Greifeld, including his thoughts on the bank stress tests please watch the video above.
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