Nasdaq CEO Adena Friedman on Earnings, AI Spending, and Capital Markets

Nasdaq's Strong Financial Performance

• 📈 Nasdaq reported strong results with 12% overall growth and 11% growth in its solutions businesses.
• 💡 The company is proud of its performance across all segments, including its listings business.

Attracting Companies to Nasdaq

• 🚀 Nasdaq differentiates itself as the home for innovative tech companies and innovators across all sectors.
• 🤝 The exchange is attracting companies like Walmart due to its tech-enabled approach, market quality, and marketing assets.
• 🎯 Other companies like Shopify, Kimberly Clark, and Thompson Reuters are also in discussions to list on Nasdaq in 2025.

Index Business Growth and AI Investment

• 💰 Nasdaq's index business saw significant inflows, closing the year with $882 billion in its index business and $99 billion in inflows for the year.
• 💡 This allows Nasdaq, through partners, to become investors in great companies via the Nasdaq 100 index franchise.
• 🧠 The significant investment in AI by hyperscalers and semiconductor companies represents less than 70% of their annual cash flows, highlighting their immense cash-generative capabilities.

AI as a Generational Shift, Not a Bubble

• 🌐 Friedman likens the current AI investment cycle to generational sea changes like the railroads or the internet, not a flimsy stock bubble.
• ⚖️ Key differences from the dot-com bubble include large-scale, well-capitalized companies underwriting risk and higher minimum market caps for Nasdaq 100 companies.
• ✅ Companies going public today are revenue-generating with strong business momentum and KPIs, providing a more robust foundation.

Regulation and Prediction Markets

• ⚖️ Nasdaq views regulation as crucial for investor protection and ensuring a sustainable investor experience.
• 💬 The distinction is made between true investors seeking returns in equities markets and those using prediction markets for entertainment.
• 🤝 Nasdaq is actively engaging with regulators, including the CFTC and SEC, to clarify rules for prediction markets and ensure investor protection.