Nasdaq Swings to Loss on Falling Revenue
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Nasdaq Stock Market Inc., the No. 2 U.S. stock market, said Wednesday that it swung to a third-quarter loss, as revenue slumped 27% and costs rose.
Nasdaq said its net loss was $40.5 million, or 52 cents a share, compared with a profit of $10.3 million, or 13 cents, a year earlier.
Revenue fell to $144.8 million from $198.8 million and declined in all of Nasdaq’s main business lines, including fees from trading, its biggest revenue source, which tumbled 42% to $54.4 million as competition increased.
Since 2000, Nasdaq has been ravaged by the end of the boom in Internet stocks and a plunge in initial public offerings. Listed IPOs rose to 14 last quarter from two in the second quarter, however.
Nasdaq shares closed at $8.95, up 6 cents, in Nasdaq trading. They have fallen 46% from their $16.50 peak on July 2, 2002, their first day of trading.
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