Even prior to the onset of the novel coronavirus, transitioning into the cloud was a high priority for many businesses. Thus, it was only a matter of time before market-exchange operator Nasdaq (NASDAQ:NDAQ) would make that transition. Those who hold Nasdaq stock should certainly have anticipated such an event.
The coronavirus has made it even more imperative that tech-focused companies make a full commitment to the cloud. We’re living in the age of “remote everything,” and exchange-related operations are no exception to the rule.
Nasdaq certainly isn’t the first business to make a real cloud commitment, but they’re now doing it in a big way. There’s even a Microsoft (NASDAQ:MSFT) connection here, which can only help to firm up Nasdaq’s burgeoning cloud connection.
Nasdaq Stock at a Glance
Some commentators have suggested that the technology sector has been impervious to the negative impact of the coronavirus. That’s isn’t quite the case, but Nasdaq’s stock is a picture-perfect example of the tech space’s comparatively quick rebound.
Since the broader stock market bottomed out in 2009, Nasdaq’s ascent has been mostly unimpeded. The coronavirus crisis, however, precipitated the stock’s fastest and sharpest dip. During a few weeks in March, Nasdaq shares cratered from $116 to $72 and change.
Courageous traders who bought that dip fared quite well, though. Today, Nasdaq stock is knocking on $125’s door and threatening to break through $140 this year. At the current trajectory, it appears that the sky’s the limit for the stock.
All Cloud, No Friction
Imagine a SaaS (software as a service) platform that’s an end-to-end solution enabling the exchange of assets across multiple market ecosystems. On top of all that, imagine if this could all be hosted in the cloud.
Nasdaq has realized this ambitious vision with its newly unveiled Marketplace Services Platform. Among the objectives of the platform is to make the asset transaction life cycle as frictionless as possible.
Just as importantly, Marketplace Services Platform also has the potential to service a wide variety of asset classes, from commodities to derivatives to exchange-traded products and even tokenized assets (such as cryptocurrencies), on the cloud.
Moreover, the platform was designed to cover numerous facets of the marketplace dynamic. These could include the issuing and trading of assets, market surveillance, pre-trade risk management, as well as digital custody and settlement.
Marking an Inflection Point
Those who own Nasdaq stock should feel reassured, and perhaps a bit relieved, that the company is moving in this direction now. Noting that “We are at an inflection point in the capital markets,” Celent Research Director Brad Bailey explains how the transition to the cloud is an absolute necessity for a company like Nasdaq: “Building one’s own technology stack from application to infrastructure, without leveraging a platform with access to an ecosystem of partners for technology, services, cloud is becoming more difficult to justify.”
Now that the Marketplace Services Platform has been unveiled, Nasdaq shareholders can more easily justify a long-term position. Plus, a partnership with a very well-known cloud player should provide an even better reward-to-risk profile for the stockholders.
Specifically, Nasdaq is collaborating with none other than Microsoft, which is itself among the kings of cloud computing. Nasdaq’s Digital Assets Suite will be available to marketplaces via Microsoft’s cloud service, Azure.
Nasdaq is rolling out its Digital Assets Suite in conjunction with the company’s Marketplace Services Platform. The Digital Assets Suite is designed to facilitate asset issuance, and as you might expect, it’s all cloud-supported. And with the help of Microsoft, the Digital Assets Suite is poised to be a game changer in the cloud-enhanced asset ecosystem.
The Final Word
Investors should celebrate the company’s major move into the cloud. The Microsoft connection only enhances the momentum of this important transition, along with the upward potential of Nasdaq stock
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.