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Nasdaq Mulls 'Strategic Alternatives' For These 2 Units; Stock Flirts With Buy

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Nasdaq ( NDAQ ) is taking a hard look at its public relations and digital media services units as part of a broader strategic review intended to sharpen its focus on capital markets.

[ibd-display-video id=449435 width=50 float=left autostart=true]The exchange operator said Thursday it is considering "strategic alternatives" for those businesses. The move comes as Nasdaq seeks to leverage its expertise in market technology and data analytics, and is the result of a plan announced earlier this month to funnel capital and resources from slower growth businesses into reinvestments in higher-return areas.

"As a technology company, our growth path requires a review of our core strengths matched with the evolving needs of our clients," Adena Friedman, president and CEO of Nasdaq, said in a statement.

Nasdaq stock popped 0.65% to 77.63 on the stock market today , after rising to a record-high 78.31, briefly clearing a 77.85 buy point off a flat base .

IBD'S TAKE : A good flat base reflects unusual strength. This is why this supergrowth stock pattern is worth paying attention to.

The businesses under review include Nasdaq GlobeNewswire; Nasdaq Influencers; Nasdaq Media Intelligence; Nasdaq IR Websites and Newsrooms; and Nasdaq Webcasts, which have generated roughly $195 million in revenue and $25 million in operating income over the past 12 months ended June 30, the exchange giant said.

Nasdaq said it has not set a timetable for the process, nor made final decisions on any alternatives at this time.

The company describes itself as the creator of the world's first electronic stock market, with its technology powering more than 90 marketplaces in 50 countries, and one in 10 of the world's securities transactions.

Nasdaq earns the No. 9 rank among its peers in the Financial Services-Specialty industry group, one of 197 groups tracked by IBD. CBOE ( CBOE ) is ranked No. 1 within the group.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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