What Happened?

Shares of electronic bond trading platform MarketAxess (NASDAQ: MKTX) fell 4% in the morning session after the company announced its trading volume statistics for December and the fourth quarter of 2025, which showed a decline in transaction fees. 

The report indicated that total credit fees per million (FPM) fell on both a year-over-year and quarter-over-quarter basis. This decline was attributed to the mix of trading protocols used on the platform. The announcement amplified concerns about the company's profitability. Reports noted that the company's gross margin was on the lower end of its historical range, showing a long-term decline. Similarly, the operating margin had also decreased over the previous five years, pointing to a trend of shrinking profitability that concerned investors.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy MarketAxess? Access our full analysis report here.

What Is The Market Telling Us

MarketAxess’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

MarketAxess is down 2.6% since the beginning of the year, and at $173.94 per share, it is trading 24.7% below its 52-week high of $231.09 from May 2025. Investors who bought $1,000 worth of MarketAxess’s shares 5 years ago would now be looking at an investment worth $316.71.

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