Fubotv earnings beat by $0.10, revenue topped estimates
On Monday, Piper Sandler analyst Patrick Moley provided insights into the sentiment surrounding US Exchanges, Trading Companies, and Online Brokers stocks as the first quarter of 2025 earnings season approaches. Moley noted that these sectors have outperformed the broader market year-to-date, with Exchange stocks up by an average of 5.0%, Trading Company stocks by 2.3%, and Online Broker stocks by 6.1%, compared to the S&P 500’s decline of 8.8%.
The analyst anticipates that investors will shift their focus from first-quarter results to current quarter trends and future outlooks due to the volatility observed in the second quarter of 2025. Moley recommends CME Group Inc. (NASDAQ:CME) and Cboe Global Markets Inc. (BATS:NYSE:CBOE) as quality names sensitive to transaction volumes, which are expected to remain in demand amid the ongoing trade war and market uncertainty. According to InvestingPro analysis, companies in this sector maintain healthy gross profit margins averaging around 90%, with strong cash flow generation capabilities.
For investors betting on market clarity and a potential rally, Moley suggests Robinhood Markets Inc. (NASDAQ:HOOD) and Nasdaq Inc. (NASDAQ:NDAQ) as the stocks to own. Despite current negative sentiment towards NDAQ, historical performance shows it has outperformed the S&P 500 by approximately 11 percentage points in the six months following a market correction.
CBOE is currently seen as a strong defensive play, with investors expecting volume strength to continue as long as macro uncertainty persists. However, shares are likely to underperform compared to peers and the market when volatility decreases and sentiment improves. On the other hand, CME is viewed as a safe haven during times of uncertainty, with a diverse product suite that is likely to be in high demand. The sector demonstrates strong financial stability with Altman Z-scores above 4, indicating low bankruptcy risk.
NDAQ is facing challenges due to recent market volatility, which has delayed IPO activity and is expected to create headwinds for sales cycle growth in 2025. Meanwhile, HOOD’s stock performance will depend on the resilience of the retail trader, as investors question whether it can return to its 52-week high from earlier in the year after reaching what many believe was a peak in trading activity between the fourth quarter of 2024 and the first quarter of 2025.
In other recent news, BGC Group has completed its acquisition of OTC Global Holdings for $325 million, a move expected to immediately boost BGC’s earnings. OTC Global Holdings reported revenues exceeding $400 million for 2024, indicating a strategic acquisition for BGC. Additionally, BGC Group has priced a private offering of $700 million in senior unsecured notes with a 6.150% interest rate, maturing in 2030, to manage existing debt and for general corporate purposes. The company plans to use the proceeds to address its outstanding 4.375% Senior Notes due in 2025.
BGC Group has also reaffirmed its financial forecast for the first quarter of 2025, maintaining its revenue and pre-tax adjusted earnings projections. The company continues to use non-GAAP financial measures to provide a clearer picture of its operational earnings. Piper Sandler has maintained an Overweight rating on BGC Group, with a $12 price target, following positive insights shared by BGC’s new co-CEOs and Head of Investor Relations. The recent acquisition of OTC Global Holdings is seen as a key development, positioning BGC as the largest energy and commodities broker globally.
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