Robinhood's Rapid Growth vs. Tradeweb's Market Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: Fool
- Robinhood's Performance Surge: In Q3 2022, Robinhood's revenue doubled year-over-year to approximately $1.27 billion, with net income soaring over 270%, indicating strong customer engagement and an expanding asset base.
- Market Share Gains: Tradeweb has successfully captured market share over the past few years, finishing 2024 as the top platform for U.S. electronic high-grade credit markets, boasting a 22% share of U.S. Treasury trading volume, showcasing its strong market position.
- Impact of Volatility: Despite Tradeweb facing a 31% decline in stock price in 2024, primarily due to reduced data points from the government shutdown affecting trading activity, the CEO noted that the company still sees growth opportunities ahead.
- Optimistic Future Outlook: Tradeweb anticipates that market volatility will normalize with ongoing geopolitical tensions, viewing the setup heading into 2026 as constructive, with December trading volume hitting $63 trillion and average daily volume rising 27.5% year-over-year.
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Analyst Views on TW
Wall Street analysts forecast TW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TW is 137.00 USD with a low forecast of 110.00 USD and a high forecast of 189.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 103.740
Low
110.00
Averages
137.00
High
189.00
Current: 103.740
Low
110.00
Averages
137.00
High
189.00
About TW
Tradeweb Markets Inc. is a global operator of electronic marketplaces for rates, credit, equities and money markets. The Company provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 50 products to clients. It supports its clients by providing solutions across the trade lifecycle, including pre-trade, execution, post-trade and data and analytics. Its technology supports multiple asset classes, trading protocols and geographies. The Company provides deep liquidity pools to the institutional, wholesale and retail client sectors through its Tradeweb Institutional, Dealerweb, Tradeweb Direct and ICD Portal platforms. It provides fully electronic, hybrid and voice trading for the wholesale community on its Dealerweb platform. Its network comprises clients across the institutional, wholesale, retail and corporate client sectors, including global asset managers, hedge funds, central banks, banks and dealers, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Robinhood's Rapid Growth vs. Tradeweb's Market Opportunities
- Robinhood's Performance Surge: In Q3 2022, Robinhood's revenue doubled year-over-year to approximately $1.27 billion, with net income soaring over 270%, indicating strong customer engagement and an expanding asset base.
- Market Share Gains: Tradeweb has successfully captured market share over the past few years, finishing 2024 as the top platform for U.S. electronic high-grade credit markets, boasting a 22% share of U.S. Treasury trading volume, showcasing its strong market position.
- Impact of Volatility: Despite Tradeweb facing a 31% decline in stock price in 2024, primarily due to reduced data points from the government shutdown affecting trading activity, the CEO noted that the company still sees growth opportunities ahead.
- Optimistic Future Outlook: Tradeweb anticipates that market volatility will normalize with ongoing geopolitical tensions, viewing the setup heading into 2026 as constructive, with December trading volume hitting $63 trillion and average daily volume rising 27.5% year-over-year.
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Tradeweb Markets Innovates to Drive Electronic Trading Growth
- Market Service Expansion: Tradeweb has offered U.S. Treasury bond trading since 1999, generating over $25 million in revenue within four years, establishing its leadership in electronic trading and laying the groundwork for subsequent mortgage-backed securities and European sovereign debt trading.
- Product Diversification Strategy: By launching derivatives, exchange-traded funds, and emerging market derivatives, Tradeweb has successfully built network effects across products and regions, enhancing client trading experiences and platform integration capabilities.
- Growth Trend Capitalization: Global government budget deficits and a low-interest-rate environment are driving demand for fixed-income investments, allowing Tradeweb to expand into corporate debt markets and plan new product offerings in China to meet global investor needs.
- Rise of Automated Trading: Tradeweb's automated intelligence execution (AiEX) now accounts for over 40% of its institutional trades, with 140 major clients utilizing this technology, indicating the increasing attractiveness of electronic markets and the potential for further company growth.
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