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NYSE Euronext: It's a Gift Exchange!

Rick Aristotle Munarriz
February 9, 2009

Is there irony in shares of a trading exchange that trade briskly on disappointing financials? After all, won't the frenetic buying and selling -- well over 6 million shares around lunchtime in New York -- actually help its state?

Let's find out.

Shares of NYSE Euronext (NYSE: NYX  ) opened 7% lower today, after the global exchange giant posted lower-than-expected results. Revenue climbed 21% to $1.2 billion, though net revenue fell by 2% as a result of pricing initiatives that resulted in aggressively higher rebates to its customers.

NYSE reported a loss of $5.06 a share, but that is the handiwork of nearly $1.6 billion in non-cash charges to write down the value of goodwill and intangible assets. On a pro forma basis, the exchange operator posted a profit of $0.52 a share. That isn't good enough for investors, as it's less than the $0.65 a share that the company posted a year ago and even the $0.55 a share that analysts were willing to