Should You Invest in Intercontinental Exchange?

PHOTO CREDIT: Intercontinental Exchange

OVERVIEW

Why You Should?

  1. Intercontinental Exchange will usually operate better under a strong global economy as it can collect more fees because large institutions trade more often. A strong global economy is returning after this pandemic comes to an end, which is near as there are great vaccine results coming out. This will benefit the company as well as its investors.
  2. Intercontinental Exchange has profit margins of around 26%, which is a great number. Though it is not the best, 26% allows the company to grow faster and offer its investors more return as they have the funds on hand to do so.
  3. The company has seen rising revenues over the past couple of financial years due to the reasons mentioned above. Profits have been a bit more lackluster, but still great. The company looks to continue this growth in the future. These rising metrics will help the company build a stronger balance sheet, which will benefit it in the future. This will also benefit investors. In the financial year of 2019, the company reported revenues of around 5.2 billion dollars and profits of around 1.93 billion dollars. In the financial year of 2018, the company reported lower revenues of around 4.97 billion dollars but higher profits of around 1.99 billion dollars.
PHOTO CREDIT: Yahoo Finance

Why You Should Not?

  1. The progressive Democrat policy from senators like Bernie Sanders and Elizabeth Warren will hurt the company’s results. These policies call for higher taxes on Wall Street, something which could slam the top and bottom line of the Intercontinental Exchange. This will also hurt the investors of the company.

MY OPINION

--

--

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.