MarketAxess Holdings Inc. (MKTX): A Bull Case Theory 

We came across a bullish thesis on MarketAxess Holdings Inc. on The Diversified Fins Analyst’s Substack by Collin Cook. In this article, we will summarize the bulls’ thesis on MKTX. MarketAxess Holdings Inc.’s share was trading at $159.99 as of December 1st. MKTX’s trailing and forward P/E were 27.19 and 19.38, respectively according to Yahoo Finance.

AtlasClear (ATCH) Soars 23% as Wall Street Veteran Returns to Board

Source: Pixabay

At the Barclays Financial Services Conference on September 9, CEO Chris Concannon and CFO Ilene Fiszel Bieler outlined MarketAxess’s evolving growth strategy amid a challenging macro backdrop. While U.S. credit revenue has remained flat since 2021 due to lower volatility and slower adoption of newer trading protocols such as portfolio and dealer-to-dealer (D2D) trading, non-U.S. credit revenue has expanded at a 13% CAGR over the same period. The firm continues to gain share in portfolio trading and drive automation, with algorithmic trading growing 30–40% annually.

Management sees emerging markets as a major long-term opportunity given minimal electronic penetration, while in U.S. credit, block trades—representing 46% of TRACE volume—remain a large untapped segment still dominated by phone trading. MarketAxess has made progress through automation and targeted RFQ solutions that reduce information leakage, with block trading volumes up 38% year-over-year. Although portfolio trading growth has been slower than desired, client behavior is shifting gradually, and D2D trading is poised for a boost with next week’s Mid-X launch.

Despite subdued August volatility, September’s strong issuance and longer duration have revived volumes. Looking to 2026, the company is focused on delivering new client-driven solutions and enhancing its seamless integration with ICE Bonds, which management expects to deepen further. While private and public credit markets may converge over time, MarketAxess plans a disciplined approach. Capital allocation remains geared toward organic growth and opportunistic share repurchases, with M&A considered only for technologically accretive opportunities.

Previously we covered a bearish thesis on MarketAxess Holdings Inc. (MKTX) by Dan in November 2024, which highlighted overvaluation concerns amid market share loss and slower progress in portfolio trading. The stock has depreciated about 40.15% since our coverage as the thesis is yet to be played out. Collin Cook shares a contrarian view emphasizing long term rebound potential via automation and international growth.

MarketAxess Holdings Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held MKTX at the end of the second quarter which was 47 in the previous quarter. While we acknowledge the risk and potential of MKTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MKTX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW

Disclosure: None.