Latest news with #InteractiveBrokers
Globe and Mail
2 days ago
- Business
- Globe and Mail
4 Reasons to Buy Interactive Brokers Stock Like There's No Tomorrow
Key Points Interactive Brokers operates across 160 market centers in 36 countries, with approximately 84% of its customers located outside of the United States. The company's highly automated platform allows it to maintain one of the lowest-cost structures in the brokerage industry. Interactive Brokers boasts impressive profit margins, with a pretax profit margin of 74% in the first quarter, highlighting its operational efficiency. 10 stocks we like better than Interactive Brokers Group › Investing in the stock market is an excellent way to build long-term wealth. If you have a long-term horizon and are willing to take a more aggressive approach, investing in growth stocks can be for you. If you are searching for a hidden gem, look no further than Interactive Brokers (NASDAQ: IBKR). The brokerage platform enables investors to trade a diverse array of products across multiple markets. Tailored for both institutional and savvy individual investors, this platform excels in catering to those who thrive on technology and electronic trading. The company has grown steadily for several years, and continues to show leadership thanks to its low-cost structure and highly automated platform. Here's why you should consider adding this growth stock today. 1. Interactive Brokers has a global presence Interactive Brokers provides an electronic brokerage platform for executing and processing trades for a diverse range of investors, including individuals, hedge funds, mutual funds, and registered investment advisors, among others. It offers a wide array of financial products, including stocks, options, futures, foreign exchange, bonds, mutual funds, exchange-traded funds (ETFs), and event contracts (prediction markets). The company is truly a global one, with a wide reach across 160 market centers in 36 countries, operating across 28 different currencies. Approximately 84% of the company's customers reside outside the U.S., and a majority of its new customers come from international markets, giving it a strong position on a global scale. 2. Its highly automated platform makes it a low-cost leader Interactive Brokers focuses on tech-savvy investors who prioritize high-level analytics, execution speed, efficiency, and low costs. The company's commitment to this is evident from its leadership. A significant portion of its senior managers are software engineers who are dedicated to automating as much of the business as possible. This approach reflects the company's long-standing focus on developing proprietary software to automate broker-dealer functions since its inception in 1977. As a direct result of its extensive automation, IBKR has successfully maintained one of the lowest-cost structures in the industry among broker-dealers. This efficiency translates into tangible benefits for its clients, including low transaction costs, low margin rates, and stellar execution, thanks to its proprietary IB SmartRoutingSM system, which continuously seeks out the best available prices. 3. It has best-in-class profit margins Interactive Brokers' focus on automation not only positions it as a low-cost provider, but also contributes to the company's stellar profit margins. As a result of its low-cost structure, which leads to operational efficiency, Interactive Brokers achieves best-in-class profit margins that surpass many financial companies. Interactive Brokers' pre-tax profit margin was 71% in 2024 and rose to 74% in the first quarter. Strong profit margins are a result of Interactive Brokers' superior cost structure, highlighting its operational efficiency. It also means that the company is efficiently generating a profit, providing it with more capital to invest in its platform or return to shareholders through dividends. 4. Elevated interest rates are a tailwind Interactive Brokers specializes in executing, clearing, and settling trades daily, earning commissions from this activity. It offers customers a commission structure that provides for lower commissions for high-volume customers. It also receives revenue from market makers for payment for order flow through its IBKR LiteSM offering, which offers commission-free trading. While commissions are a primary source of revenue, Interactive Brokers also benefits from the higher interest rate environment. The company primarily earns interest from margin lending, investments in government securities, and from borrowing and lending activities. Meanwhile, it pays customers interest on qualified cash balances. The net of these two, known as net interest income, is the result. In the first quarter, the company generated $770 million in net interest income, representing a 3% increase from the same period last year. This outpaced its commission income in the quarter, which was $514 million. With the Federal Reserve pausing interest rate cuts, due to concerns about inflation from tariffs, Interactive Brokers should continue to benefit from the elevated rates. A solid company with a strong balance sheet Interactive Brokers has plenty of cash on hand, with a balance sheet of $150 billion that is highly liquid (99% liquid according to management). The company also has no long-term debt, and it is growing at an impressive rate. Since the start of 2018, Interactive Brokers has grown its revenue by 491% and net income by 943%. Given its stellar margins, solid growth, and cost advantages, Interactive Brokers appears to be a solid growth stock for investors to consider purchasing today. Should you invest $1,000 in Interactive Brokers Group right now? Before you buy stock in Interactive Brokers Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Interactive Brokers Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
Yahoo
2 days ago
- Business
- Yahoo
4 Reasons to Buy Interactive Brokers Stock Like There's No Tomorrow
Key Points Interactive Brokers operates across 160 market centers in 36 countries, with approximately 84% of its customers located outside of the United States. The company's highly automated platform allows it to maintain one of the lowest-cost structures in the brokerage industry. Interactive Brokers boasts impressive profit margins, with a pretax profit margin of 74% in the first quarter, highlighting its operational efficiency. 10 stocks we like better than Interactive Brokers Group › Investing in the stock market is an excellent way to build long-term wealth. If you have a long-term horizon and are willing to take a more aggressive approach, investing in growth stocks can be for you. If you are searching for a hidden gem, look no further than Interactive Brokers (NASDAQ: IBKR). The brokerage platform enables investors to trade a diverse array of products across multiple markets. Tailored for both institutional and savvy individual investors, this platform excels in catering to those who thrive on technology and electronic trading. The company has grown steadily for several years, and continues to show leadership thanks to its low-cost structure and highly automated platform. Here's why you should consider adding this growth stock today. 1. Interactive Brokers has a global presence Interactive Brokers provides an electronic brokerage platform for executing and processing trades for a diverse range of investors, including individuals, hedge funds, mutual funds, and registered investment advisors, among others. It offers a wide array of financial products, including stocks, options, futures, foreign exchange, bonds, mutual funds, exchange-traded funds (ETFs), and event contracts (prediction markets). The company is truly a global one, with a wide reach across 160 market centers in 36 countries, operating across 28 different currencies. Approximately 84% of the company's customers reside outside the U.S., and a majority of its new customers come from international markets, giving it a strong position on a global scale. 2. Its highly automated platform makes it a low-cost leader Interactive Brokers focuses on tech-savvy investors who prioritize high-level analytics, execution speed, efficiency, and low costs. The company's commitment to this is evident from its leadership. A significant portion of its senior managers are software engineers who are dedicated to automating as much of the business as possible. This approach reflects the company's long-standing focus on developing proprietary software to automate broker-dealer functions since its inception in 1977. As a direct result of its extensive automation, IBKR has successfully maintained one of the lowest-cost structures in the industry among broker-dealers. This efficiency translates into tangible benefits for its clients, including low transaction costs, low margin rates, and stellar execution, thanks to its proprietary IB SmartRoutingSM system, which continuously seeks out the best available prices. 3. It has best-in-class profit margins Interactive Brokers' focus on automation not only positions it as a low-cost provider, but also contributes to the company's stellar profit margins. As a result of its low-cost structure, which leads to operational efficiency, Interactive Brokers achieves best-in-class profit margins that surpass many financial companies. Interactive Brokers' pre-tax profit margin was 71% in 2024 and rose to 74% in the first quarter. Strong profit margins are a result of Interactive Brokers' superior cost structure, highlighting its operational efficiency. It also means that the company is efficiently generating a profit, providing it with more capital to invest in its platform or return to shareholders through dividends. 4. Elevated interest rates are a tailwind Interactive Brokers specializes in executing, clearing, and settling trades daily, earning commissions from this activity. It offers customers a commission structure that provides for lower commissions for high-volume customers. It also receives revenue from market makers for payment for order flow through its IBKR LiteSM offering, which offers commission-free trading. While commissions are a primary source of revenue, Interactive Brokers also benefits from the higher interest rate environment. The company primarily earns interest from margin lending, investments in government securities, and from borrowing and lending activities. Meanwhile, it pays customers interest on qualified cash balances. The net of these two, known as net interest income, is the result. In the first quarter, the company generated $770 million in net interest income, representing a 3% increase from the same period last year. This outpaced its commission income in the quarter, which was $514 million. With the Federal Reserve pausing interest rate cuts, due to concerns about inflation from tariffs, Interactive Brokers should continue to benefit from the elevated rates. A solid company with a strong balance sheet Interactive Brokers has plenty of cash on hand, with a balance sheet of $150 billion that is highly liquid (99% liquid according to management). The company also has no long-term debt, and it is growing at an impressive rate. Since the start of 2018, Interactive Brokers has grown its revenue by 491% and net income by 943%. Given its stellar margins, solid growth, and cost advantages, Interactive Brokers appears to be a solid growth stock for investors to consider purchasing today. Should you invest $1,000 in Interactive Brokers Group right now? Before you buy stock in Interactive Brokers Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Interactive Brokers Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. 4 Reasons to Buy Interactive Brokers Stock Like There's No Tomorrow was originally published by The Motley Fool Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
2 days ago
- Business
- Yahoo
Interactive Brokers (IBKR) Gets 8% Upside from Higher Price Target, Impressive Earnings
We recently published . Interactive Brokers Group, Inc. (NASDAQ:IBKR) is one of this week's top performers. Interactive Brokers jumped by 7.77 percent on Friday to close at $64.05 apiece as investors took heart from two analysts' higher price target for its stock following an impressive earnings performance in the second quarter of the year. In a market note after the earnings results, BofA Securities raised Interactive Brokers Group, Inc. (NASDAQ:IBKR) to $71 from $69 previously and reaffirmed its 'buy' recommendation for its stock. The new figure represents a 10.8-percent upside from its latest closing price. For its part, Citi upgraded its stock price to $65 from $60, but maintained a 'neutral' rating. A skilled senior trader executing an order in a fast paced trading environment. The analyses followed Interactive Brokers Group, Inc.'s (NASDAQ:IBKR) strong earnings during the quarter on the back of an expansion in net interest income, with net income attributable to shareholders ending at $224 million, or 25 percent higher than the $179 million registered in the same period last year. Total revenues increased by 20 percent to $1.48 billion from $1.23 billion year-on-year. While we acknowledge the potential of IBKR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
3 days ago
- Business
- CNBC
Strong start for earnings season creates support for Wall Street's record highs
The opening week of earnings season has given Wall Street bulls plenty to celebrate, helping the S & P 500 hit new highs. Earnings season kicked off with the big banks, which mostly delivered positive results for the quarter. Continuing the strength in financials, Interactive Brokers and Charles Schwab moved higher on Friday after their earnings reports. Even some stocks that were falling after their reports, including Netflix and 3M on Friday, beat Wall Street expectations for the second quarter on the headline metrics. According to FactSet senior earnings analyst John Butters, 12% of S & P 500 companies have already reported their quarterly results. Of those, 83% have beaten Wall Street expectations for earnings per share, which is above the five-year average of 78%. The percentage of companies that have posted a positive revenue surprise is also 83%. Of course, expectations have fallen over the course of the year, so the beats aren't necessarily as impressive as those in some prior quarters. Still, Michael Arone, chief investment strategist at State Street Investment Management, said the story of the first week of earnings season is "so far, so good." That goes for the results themselves, as well as the outlooks and commentary from management. "There is an opportunity here for corporate executives to suggest, 'hey, the outlook's just too murky so we're not going to provide that guidance.' Yet I feel like not only has it been more optimistic than I would have thought — particularly from the big banks — but also a bit more clear. And then I'm surprised at the confidence or the conviction that they're providing with that future guidance," Arone said. .SPX 5D mountain The S & P 500 hit an intraday record on Friday. One thing helping earnings appears to be the weaker U.S. dollar, which can make earnings generated overseas look stronger to domestic investors. PepsiCo and Netflix were among the companies that have highlighted that change this week. Arone said that could continue to boost tech company results in particular as the earnings season progresses. One caveat is that earnings reports tend to be grouped by industry, and the stats and narrative can change as different sectors take their turn in the hot seat. Arone highlighted retailers as a group he is keeping an eye on. "The big retailers, they typically report later on in earnings season, so it will be interesting to see what they're suggesting about consumer trends," such as whether customers are trading down to cheaper goods, Arone said.
Yahoo
3 days ago
- Business
- Yahoo
Why Interactive Brokers Stock Popped on Friday
Key Points Interactive Brokers stock beat on the top and bottom lines on Thursday evening. The company grew its customer count 32%, but its earnings only 24%. Interactive Brokers outperformed expectations this time, but long-term growth looks too slow to justify a premium valuation. 10 stocks we like better than Interactive Brokers Group › Online stockbroker Interactive Brokers Group (NASDAQ: IBKR) soared to close up 7.65% on Friday after beating on both the top and bottom lines Thursday evening. Heading into the quarter, analysts forecast Interactive Brokers would earn $0.45 per share (adjusted for one-time items) on sales of just under $1.4 billion. In fact, the company earned $0.51 per share -- generally accepted accounting principles (GAAP) -- and its sales were just under $1.5 billion. Interactive Brokers Q2 earnings Not only did Interactive Brokers report GAAP earnings superior to the mere "adjusted" earnings number Wall Street was looking for, but its earnings actually grew 24% in comparison to last year's Q2. Revenue growth for the quarter was only 20%, so profit margins on revenue improved as well. Interestingly, new customer accounts grew only 32% during the quarter, however, so much of the company's increase in revenue (and profit) must have come from existing customers, with new customers just dipping their toes in the water initially. Indeed, DARTs (daily average revenue trades) for the company grew 49%, suggesting that long-term customers of the company traded even more frequently in the quarter. Is Interactive Brokers stock a buy? Management did not give guidance for the coming quarter or for the full year. For what it's worth, though, analysts who follow the stock forecast Q3 earnings very similar to Q2 -- $0.46 per share, unless IB surprises them again. Revenue growth is supposed to be similarly modest, up only 3% year over year. Granted, longer term, analysts see the company growing earnings at a faster rate -- 12.5% annually over the next five years. Still, that doesn't seem fast enough to justify the stock's premium valuation of nearly 33x trailing earnings. At that high price, I just can't bring myself to recommend the stock, earnings beat or no earnings beat. Do the experts think Interactive Brokers Group is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Interactive Brokers Group make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,069% vs. just 180% for the S&P — that is beating the market by 888.61%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. Why Interactive Brokers Stock Popped on Friday was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
