Republicans and Democrats all compete together in the unusual primary to set the one-on-one race in November. Two Democrats and one Republican were in close contention. (Image credit: Jason Henry)
Republicans and Democrats all compete together in the unusual primary to set the one-on-one race in November. Two Democrats and one Republican were in close contention. (Image credit: Jason Henry)
FabrikaCr/iStock via Getty Images A Market Maker with 4 Earnings Beats in a Row To start a new month, I'm initiating coverage of a stock I never wrote about, and that is a unique one among financial firms with a key role to play in market making each trading day. Virtu Financial, Inc. ( VIRT ) is a NYC-based company with around $7.7B in market cap, and besides market making, its suite of other seg...
FabrikaCr/iStock via Getty Images A Market Maker with 4 Earnings Beats in a Row To start a new month, I'm initiating coverage of a stock I never wrote about, and that is a unique one among financial firms with a key role to play in market making each trading day. Virtu Financial, Inc. ( VIRT ) is a NYC-based company with around $7.7B in market cap, and besides market making, its suite of other segments includes execution services, liquidity sourcing, workflow tech, and trading analytics. It also beat Q1 earnings estimates when it reported in late April, its 4th beat in a row, so in today's article, I'll be taking a closer look at what factors are driving this stock and also what are some risks and challenges it can face. A Neutral View For First Coverage For my initial rating of this stock, I went with a hold rating. Although bullish factors include investor momentum and growth in trading income, as well as improving margins, it is a below-investment-grade stock exposed to market risk, and forecasts show limited upside by 2027, although, as a stable dividend income idea, it definitely could be on my watchlist. Virtu - Rating Worksheet (Author) Trading Propels YoY Revenue Growth In this initial section that covers top-line growth, I gave the stock a strong buy, considering YoY trading income growth, a resilient S&P 500 forecast for FY26, and a proven revenue growth trend. In thinking about what can drive growth at this type of firm, we see from its Q1 results (pg. 2) that the largest revenue driver is trading income, and it grew substantially on a YoY basis, helping bring up overall revenue growth. Virtu - Revenue Growth (Q1 Results) So, I think a key macroeconomic factor that would impact this firm is rising and falling trading volumes and market confidence, since this firm's entire business is somehow tied to high volumes of trading occurring each week. I think a good indicator of where markets and confidence may be heading could be forecasts for the S&P 500, a maj...
Velishchuk/iStock via Getty Images Bitcoin ( BTC-USD ) extended its decline on Wednesday, falling to its lowest level since February as investors continued to favor equities and other risk assets over cryptocurrencies. The world's largest cryptocurrency dropped as much as 2.3% to $65,385, before paring some losses and trading just above $67K at press time. Meanwhile, Ethereum ( ETH-USD ) traded at...
Velishchuk/iStock via Getty Images Bitcoin ( BTC-USD ) extended its decline on Wednesday, falling to its lowest level since February as investors continued to favor equities and other risk assets over cryptocurrencies. The world's largest cryptocurrency dropped as much as 2.3% to $65,385, before paring some losses and trading just above $67K at press time. Meanwhile, Ethereum ( ETH-USD ) traded at $1,874. The primary driver behind the drop has been record outflows from spot Bitcoin ETFs. “Investors have withdrawn between $2.3 and $2.8 billion in recent weeks, marking the largest selling streak since the launch of ETFs in the United States. Institutional demand, which had been the main growth driver in recent quarters, has noticeably weakened," explained SA analyst Traders Union . Additional pressure came from Strategy’s ( MSTR ) first Bitcoin sale in nearly four years. While the transaction involved just 32 bitcoins out of the company's 843,706-coin treasury, it challenged chairman Michael Saylor's long-standing "never sell" stance. X The weakness in Bitcoin stood in sharp contrast to broader markets. The S&P 500 ( SP500 ) and Nasdaq 100 ( NDX ) both closed at record highs on Tuesday, while most Asian equities advanced on Wednesday, with Japan's Nikkei 225 ( NKY:IND) reaching a fresh all-time high. 1-Y return (Seeking Alpha) “External factors are also weighing on the market. Rising tensions in the Middle East, increasing oil prices, and expectations that the Federal Reserve will maintain high interest rates are reducing the appeal of risk assets. Investors are shifting capital away from cryptocurrencies into safer instruments. As a result, Bitcoin is showing weaker performance even compared to the U.S. stock market, which remains near all-time highs,” Traders Union added. From a technical perspective, the market has reached a critical support area. Analysts note that a sustained move below $70,000 could open the path toward the $68,000–65,000 range. More on Bitcoin ...
MongoDB's blowout quarter is the latest proof that the SaaSpocalypse trade was built on fear rather than fundamentals, and the recovery is only getting started.
MongoDB's blowout quarter is the latest proof that the SaaSpocalypse trade was built on fear rather than fundamentals, and the recovery is only getting started.