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NEW YORK - Tradeweb Markets Inc. (NASDAQ:TW), a prominent operator of electronic marketplaces with a market capitalization of $32.69 billion, announced a significant year-over-year (YoY) increase in average daily volume (ADV) for May 2025. The ADV rose by 33.3% to $2.5 trillion, evidencing robust trading across the company’s platforms. Excluding the impact of the ICD acquisition completed on August 1, 2024, the growth rate stood at 20.3%. According to InvestingPro data, the company maintains excellent financial health with a "GREAT" overall score, supported by strong liquidity metrics and consistent profitability.
In the rates market, U.S. government bond ADV surged 22.6% YoY to $236.0 billion, while European government bond ADV matched this growth rate, reaching $50.8 billion. The increases were attributed to heightened activity in institutional and wholesale client channels. Mortgage ADV also saw a rise of 16.8% YoY to $230.2 billion, driven by strong roll volume and a record number of clients on Tradeweb’s specified pool platform. This growth aligns with the company’s impressive revenue expansion of 28.94% over the last twelve months, with a robust gross profit margin of 94.19%.
The derivatives sector experienced mixed results. Swaps/swaptions with a maturity of one year or longer saw a modest 1.6% YoY increase in ADV to $492.0 billion. However, total rates derivatives ADV climbed 13.5% YoY to $890.3 billion. Market volatility, spurred by changes in U.S. tariff policy and Treasury yield curve movements, contributed to this performance.
In the credit markets, fully electronic U.S. credit ADV rose by 25.0% YoY to $8.3 billion, and European credit ADV grew 8.6% YoY to $2.4 billion. Tradeweb credited the growth to greater adoption of its trading protocols, particularly in Portfolio Trading and request-for-quote (RFQ) systems. Municipal bonds ADV also reported a significant increase of 38.3% YoY to $494 million.
Equities trading on Tradeweb platforms saw substantial growth, with U.S. ETF ADV up 43.4% YoY to $8.8 billion and European ETF ADV increasing 42.6% YoY to $3.3 billion. This was supported by a growing client base and broader use of Tradeweb’s Automated Intelligent Execution (AiEX) tool.
Repo ADV in the money markets category grew 28.8% YoY to $779.7 billion, with record global repo trading activity. Factors such as the Fed’s balance sheet unwind and increased government bond issuance were cited as drivers of this growth.
The information provided is based on a press release statement from Tradeweb Markets Inc. and excludes volumes generated by certain trial agreements, non-calculated notional value products, and non-rates, credit, equities, or money markets products. The full report, including detailed historical data, is available on Tradeweb’s website. InvestingPro analysis reveals that while the stock trades at a premium P/E ratio of 56.26, analysts maintain a positive outlook with multiple upward earnings revisions for the upcoming period. For deeper insights into Tradeweb’s financial health and growth prospects, including exclusive ProTips and comprehensive analysis, explore the detailed Pro Research Report available on InvestingPro.
In other recent news, Tradeweb Markets Inc. reported its first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $0.86, slightly above the forecasted $0.85. The company achieved record quarterly revenues of $510 million, a 24.7% increase from the previous year, with international revenues making up 40% of the total. Additionally, Tradeweb announced a 20% increase in its quarterly dividend to $0.12 per share. The company also named Sherry Marcus as the new Head of Artificial Intelligence, a move aimed at enhancing its AI capabilities. Ms. Marcus, with a strong background in data science and AI, previously worked at Amazon Web Services and BlackRock. Her appointment is expected to drive further innovation in Tradeweb’s electronic trading solutions. These developments reflect Tradeweb’s ongoing efforts to expand and innovate within the financial markets.
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