Nasdaq Inc.
Moat Score — Nasdaq Inc.
Total Moat Score
19 / 30
| Moat Factor | Score | Analysis |
|---|---|---|
| Intangible Assets Patents, trademarks, brand strength, or regulatory licenses that protect a company's products or services from being freely copied by competitors. | 3 / 5 | The Nasdaq listing itself functions as a marketing and prestige asset, particularly for technology and growth companies, and the Nasdaq-100 index brand underlies one of the largest ETFs in the world, though the newer fintech software businesses are less brand-differentiated. |
| Cost Advantage A durable ability to produce goods or services more cheaply than competitors — through scale, unique access to cheap inputs, location, or process — that lets a company undercut rivals or out-earn them at the same price. | 2 / 5 | Exchange operations benefit from scale economics, but Nasdaq's Financial Technology software segment competes against well-resourced vendors like SS&C, FIS, and Broadridge on features and price rather than on any clear cost advantage. |
| Pricing Power The ability to raise prices without losing meaningful business, because the product or service is differentiated, mission-critical, or has few good substitutes. | 3 / 5 | Data, listing, and embedded compliance software fees give Nasdaq decent pricing power, though the Market Services trading segment remains volume- and fee-competitive with other exchanges, tempering overall pricing leverage. |
| Network Effect The product or service becomes more valuable to every user as more people or organizations use it, making an established leader harder to displace. | 4 / 5 | Exchanges exhibit classic network effects: deeper liquidity attracts more trading activity, which in turn attracts more listings and market participants, reinforcing Nasdaq's position as a leading global listing and trading venue. |
| Switching Costs The money, time, or operational disruption a customer would face switching to a competitor, which locks in existing customers and supports renewals. | 4 / 5 | Listed companies rarely switch exchanges once listed, and banks that embed Nasdaq's Adenza and Verafin risk-management and anti-financial-crime software into core operations face substantial costs and risk in ripping that infrastructure out. |
| Efficient Scale A market that can only profitably support a small number of players, so incumbents face limited threat from new entrants even without other defenses. | 3 / 5 | A relatively small number of major global exchanges (NYSE/ICE, Nasdaq, LSEG, Deutsche Börse, Euronext) dominate listings and trading, with regulatory approval requirements creating real barriers to launching a credible new exchange from scratch. |