TW - Tradeweb Markets Inc.

NasdaqGS - NasdaqGS Real-time price. Currency in USD
+0.39 (+0.91%)
At close: 4:00PM EST
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Previous close42.76
Bid40.38 x 800
Ask43.39 x 800
Day's range42.60 - 43.49
52-week range33.68 - 50.48
Avg. volume956,093
Market cap9.598B
Beta (3Y monthly)N/A
PE ratio (TTM)68.28
EPS (TTM)0.63
Earnings date7 Nov 2019
Forward dividend & yield0.32 (0.74%)
Ex-dividend date2019-11-29
1y target est48.29
  • Goldman Chief Solomon Says Profit Matters After WeWork Loss

    Goldman Chief Solomon Says Profit Matters After WeWork Loss

    (Bloomberg) -- Goldman Sachs Group Inc., stung by losses in Uber Technologies Inc. and WeWork, has a message for investors in growth stocks: profit matters.After years of pursuing revenue growth at all costs, driven by cheap money, markets are increasingly focusing on whether companies can translate top line expansion into profitability, Chief Executive Officer David Solomon said Tuesday in a wide-ranging interview that also touched on Europe’s negative interest rates and his plans for the bank’s investor day in January.“It’s important for people to grow, but there’s got to be a clear and articulated path to profitability,” Solomon said in a Bloomberg TV interview with Matt Miller in Berlin. “I think there’s a little more market discipline coming into play.”Goldman Sachs, which relies on investments with its own money as a key profit driver, last quarter suffered the worst performance in more than three years from equity wagers in public and private companies. The slump in prized holdings added to a perception that the investments are subject to unpredictable swings even as the company works to provide more disclosure.The bank took a $267 million hit on public equity investments such as ride-hailing company Uber Technologies Inc., Avantor Inc. and Tradeweb Markets Inc. Its stake in WeWork declined by $80 million after plans for an initial public offering collapsed.Solomon stopped short of comparing the recent troubles in the market for IPOs to the dot-com crisis, though they underscore how, after years of ultra-loose monetary policy, markets are demanding proof that companies can make money.“The monetary policy that has been ramping around the world has basically forced people out on the risk curve, has forced people to look for other ways to drive returns, and one of the things they’ve been chasing is growth and to some degree growth at all costs,” Solomon said in the interview. “The market here is speaking and telling people here, let’s rein that in a little a bit.”Solomon sought to put a positive spin on the failed WeWork IPO, saying it showed capital markets function properly. While there was a lot of hype around the company, investors were able to discuss the relevant financial information and “there was a pretty clear view as to whether the company could go public,” he said.He declined to discuss the IPO of Saudi Aramco, the world’s largest oil producer, because it is an active transaction. The bank is a global coordinator on Aramco’s initial public offering, which could become the world’s biggest ever. Saudi Arabia is aiming for a valuation of between $1.6 trillion and $1.8 trillion, according to people familiar with the matter. But analysts at banks working on the deal offered wildly diverging estimates.Aramco’s IPO was delayed just days before an expected October launch after doubts re-emerged about the $2 trillion valuation Prince Mohammed initially placed on the energy giant. He caused something of a shock in 2016 when he announced the plan and gave the lofty estimate, which would make Aramco almost twice the size of Apple Inc., the world’s biggest company by market capitalization.“Different people will have different valuations and parameters,” Solomon said. Still, “when you run an IPO process and you get an IPO process to the point where a valuation range is set and then you are actually selling securities to investors, I don’t think it’s that hard to get to a pretty narrow range for what the market expects and where buyers and sellers can meet.”The CEO also waded into the debate about negative interest rates, suggesting history will take a dim view of that monetary policy experiment. The European Central Bank has imposed negative rates on banks for half a decade now. Some of Europe’s most senior bankers have blasted the policy, with Deutsche Bank AG CEO Christian Sewing saying it ruins the financial system in the long run.Europe’s ExperimentWhile central bankers argue they support the economy, the burden on commercial banks is mounting and the industry is warning about detrimental long-term side effects. Solomon, who took over at the helm of Goldman Sachs a little more than a year ago, also questioned their economic benefit.“When we look back on negative rates, I think when the book’s written, it’s not going to look like a great experiment,” he said. “Growth in this part of the world has been lagging and negative rates have not allowed an acceleration of that growth in my opinion.”Read more: Banks count cost of negative rates as ECB tries to ease painThe losses on the equity investments last quarter add to headwinds for Solomon, 57. Shares of Goldman Sachs, which celebrates its 150th anniversary this year, have trailed peers as investors await the fallout from a global corruption scandal involving Malaysia’s investment fund 1MDB. The CEO has also struggled to revive the trading unit, and pleaded for patience with a fledgling consumer business started by his predecessor.Solomon is tightening the bank’s partnership ranks and installing new leaders across divisions. He has promised to lay out a vision for the firm’s future at the firm’s inaugural investor day in January that could serve as a catalyst for its stock, though he cautioned on Tuesday that shareholders shouldn’t expect a shift in strategy.“We’ve got very, very good businesses that we’re very proud of and we’d like to evolve those businesses a little bit,” Solomon said. “I wouldn’t expect any big reveal.”(Adds Goldman’s role in Aramco IPO in ninth paragraph.)\--With assistance from Sridhar Natarajan.To contact the reporters on this story: Matthew Miller in Berlin at;Steven Arons in Frankfurt at;Nicholas Comfort in Frankfurt at ncomfort1@bloomberg.netTo contact the editors responsible for this story: Dale Crofts at, ;Daniel Schaefer at, Christian BaumgaertelFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • We're learning how much big banks are feeling Silicon Valley's pain: Morning Brief
    Yahoo Finance

    We're learning how much big banks are feeling Silicon Valley's pain: Morning Brief

    Top news and what to watch in the markets on Wednesday, October 16, 2019.

  • Zoom Video and CRWD Lead Tech IPO Gains in 2019
    Market Realist

    Zoom Video and CRWD Lead Tech IPO Gains in 2019

    Zoom Video is trading significantly higher than 2019's other IPO debutants. Zoom stock had an offer price of $36 and is trading at $73.52—104% higher.

  • Goldman Faces $260 Million Hit From Equity Bets as Uber Plunges

    Goldman Faces $260 Million Hit From Equity Bets as Uber Plunges

    (Bloomberg) -- Goldman Sachs Group Inc.’s bets on four companies delighted investors a quarter ago. This time around, they’re inflicting about $260 million of pain.Those losses are driven by investments made for its own account in Uber Technologies Inc. and Avantor Inc., which both slumped in the third quarter. The ride-hailing company has seen a third of its market value erased after a woeful public-market debut, while Avantor lost 23% in the same period. That led to hits of more than $100 million each for Goldman.Goldman was barred from selling its holdings in the companies immediately after they went public, as is typical for private investors. The size of the positions was derived from filings and company disclosures. A spokeswoman for Goldman Sachs declined to comment.Gains from investments with its own money are sometimes Goldman Sachs’s biggest profit driver, and executives have argued they showcase a core skill of the firm that should be valued by shareholders. But some analysts and investors have pointed to quarterly volatility in its Investing & Lending division as a reason to discount those profits. The swings in these marquee holdings may add to that perception.“The ‘I’ in the I&L can still be chunky and difficult to forecast,” said Mike Mayo, a senior bank analyst at Wells Fargo & Co. “It’s certainly a headwind in the quarter.”Mayo recently lowered his estimates and is now forecasting a 30% drop in investing and lending revenue from the second quarter. Goldman Sachs is unique among banks in the scale of its principal investments, with a $22 billion equity portfolio. Executives have said they plan to move their merchant banking units more toward managing client money and away from making bets with the firm’s money.The investment bank credited Uber and Avantor, along with Tradeweb Markets Inc. and online recruiter HeadHunter Group Plc, with lifting results in the second quarter. The firm said its positions in companies that went public in the second quarter generated about $500 million dollars in gains. That was mostly driven by a special one-time gain from Tradeweb.Tradeweb also declined 16% in the period, but that loss was mitigated by a similar advance in HeadHunter.The four holdings made up 55% of the company’s $2.6 billion public investment portfolio as of June 30, Chief Financial Officer Stephen Scherr said in July. Banks sometimes discount a holding’s value if the stake is large or would prove difficult to quickly divest.Goldman got in early on Uber, investing when the venture was just starting to expand. That allowed the bank to ride big gains as the company’s valuation exploded in recent years. It holds roughly 10 million shares of Uber.Avantor, a chemical maker for the life-sciences industry, has also been a big money spinner for Goldman. The bank and its client scored more than $400 million in proceeds from Avantor’s initial public offering in the second quarter, as well as merger advisory work before that.Goldman isn’t alone in facing pain from investments in newer companies after years of gains. Jefferies Financial Group Inc.’s third-quarter earnings took a hit from WeWork’s dropping valuation as the investment bank had to mark down its stake.To contact the reporter on this story: Sridhar Natarajan in New York at snatarajan15@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at, Dan Reichl, David ScheerFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Multi-class share structures create a 'significant long-term cost': Goldman Sachs
    Yahoo Finance

    Multi-class share structures create a 'significant long-term cost': Goldman Sachs

    One of newly public firms’ favorite tools to boost executives’ control may also be a long-term liability, according to Goldman Sachs.

  • GS vs. TW: Which Stock Is the Better Value Option?

    GS vs. TW: Which Stock Is the Better Value Option?

    GS vs. TW: Which Stock Is the Better Value Option?

  • Tradeweb Markets Inc. (TW) Q2 2019 Earnings Call Transcript
    Motley Fool

    Tradeweb Markets Inc. (TW) Q2 2019 Earnings Call Transcript

    TW earnings call for the period ending June 30, 2019.

  • LPL Financial (LPLA) Completes Allen & Company Acquisition

    LPL Financial (LPLA) Completes Allen & Company Acquisition

    The acquisition of Allen & Company will likely be conducive to LPL Financial's (LPLA) revenue growth in the upcoming period.

  • Fed Cut Clouds Banks' Earnings Outlook, Are Lenders Worried? (Revised)

    Fed Cut Clouds Banks' Earnings Outlook, Are Lenders Worried? (Revised)

    Q2 has so far been good for Big Wall Street Banks, though the outlook seems blurred from Fed's 25-points rate cut and downfall in investment banking.

  • Citigroup Just Kicked Off Earnings Season on a High Note
    Motley Fool

    Citigroup Just Kicked Off Earnings Season on a High Note

    There were a few weak points, but Citigroup delivered generally strong results in the second quarter.

  • Need To Know: Tradeweb Markets Inc. (NASDAQ:TW) Insiders Have Been Buying Shares
    Simply Wall St.

    Need To Know: Tradeweb Markets Inc. (NASDAQ:TW) Insiders Have Been Buying Shares

    It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that...

  • Here's Why You Should Bet on LPL Financial (LPLA) Stock Now

    Here's Why You Should Bet on LPL Financial (LPLA) Stock Now

    Strong fundamentals and positive estimate revisions are expected to continue driving LPL Financial's (LPLA) stock.

  • Bloomberg

    Online Brokerages Slide as Bernie Sanders Talks New Taxes

    (Bloomberg) -- Shares of online brokers including TD Ameritrade Holding Corp. and E*Trade Financial Corp. slid after Democratic presidential candidate Bernie Sanders proposed canceling the nation’s outstanding $1.6 trillion of student debt and offsetting the cost with a tax on Wall Street transactions.The Sanders plan would include a 0.5% tax on stock transactions, a 0.1% tax on bond trades and a .005% tax on derivatives transactions.The financial transaction tax (FTT) “boogeyman” appearing on the campaign trail is weighing on the group, Compass Point senior policy analyst Isaac Boltansky said via email. “Whether clients are interested or not in the student loan proposal, the use of the FTT as a pay-for signaled that the issue would play a meaningful role in the Democratic presidential conversation.”A new tax would probably hurt trading volume, Bloomberg Intelligence analyst Andrew Silverman said. A financial transaction tax may “cause the asset values of publicly offered stocks, bonds and futures to decline because the tax could cause demand to decline,” Silverman said.Even so, Silverman sees such a tax as unlikely to pass anytime soon, “and even then only if Congress moves significantly to the left and the president is a Democrat, too.”Shares of E*Trade fell as much as 3.7% Monday, to the lowest since March 22. TD Ameritrade dropped as much as 3.6%, to the lowest since January 2.Charles Schwab Corp. fell as much as 3.5%, to the lowest since December 26. Analysts have recently flagged Schwab’s interest-rate sensitivity, with Deutsche Bank earlier this month cutting its rating on the stock to hold. Deutsche Bank at that time kept TD Ameritrade and E*Trade rated buy, given their “better interest rate sensitivity profiles, leverage to customer trading, and at least a modest possibility of a merger scenario between the two.”Earlier in June, Cowen warned that the prospect of a financial transaction tax would get more attention ahead of the first Democratic presidential debate, presenting a recurring risk for exchanges and financial firms. Analyst Jaret Seiberg flagged candidates who’d previously called for a transaction tax, include Senator Kirsten Gillibrand and Senator Elizabeth Warren. In May, Sanders had introduced legislation that would impose a tax on trades of all stocks, bonds and derivatives.Other stocks with declines on Monday included Tradeweb Markets Inc., down as much as 4.5%, Nasdaq Inc., with a drop of as much as 2%, and Virtu Financial Inc., down as much as 2.9%.To contact the reporter on this story: Felice Maranz in New York at fmaranz@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at, Scott SchnipperFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Forget Rate Woes, Bank ETFs to Stay Strong on Unicorn IPOs

    Forget Rate Woes, Bank ETFs to Stay Strong on Unicorn IPOs

    A slight flattening of the yield curve may hurt bank stocks' profitability, but underwriting of several unicorn IPOs should help these financial ETFs.

  • U.S. IPO Market Buzzing Hot: ETFs to Tap the Boom

    U.S. IPO Market Buzzing Hot: ETFs to Tap the Boom

    Investing in multiple IPOs at the same time can be a difficult task; however, investors can easily tap the IPO resurgence with the two domestic-focused ETFs.

  • Motley Fool

    Why Tradeweb’s IPO Shot Higher

    Innovating in the stodgy world of bond and fixed-income trading apparently pays.

  • GlobeNewswire

    Nasdaq Welcomes Tradeweb Markets Inc. (Nasdaq: TW) to The Nasdaq Stock Market

    Tradeweb Markets Inc. (TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, rang the Nasdaq MarketSite bell in Times Square today in celebration of its initial public offering (IPO) on The Nasdaq Stock Market. “We’re excited to open the market at Nasdaq today and make our debut as a public company,” said Lee Olesky, Co-founder and Chief Executive Officer of Tradeweb Markets. “Tradeweb was founded more than 20 years ago with $8 million in startup funding and a belief that we could bring positive changes to the global fixed income market.