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Yahoo
20 hours ago
- Business
- Yahoo
This Unstoppable Stock-Split Stock -- Which Is Up 700% Since Its IPO -- Could Be the Ultimate Long-Term Buy
Key Points Interactive Brokers operates one of the world's largest online investing platforms for stocks, options, futures, and cryptocurrency. Interactive stock has soared by more than 700% since it went public in 2007, prompting a 4-for-1 stock split last month. That incredible run of performance is likely to continue, based on Interactive's latest operating results. 10 stocks we like better than Interactive Brokers Group › When a company creates a significant amount of value over the long term, its stock price can soar into the hundreds or even thousands of dollars, which makes it difficult for the average retail investor to buy whole shares. But a stock split solves that by increasing the number of shares in circulation, which organically reduces the price per share by a proportionate amount. It doesn't change the underlying value of the company, it just makes the stock more accessible to smaller investors. Interactive Brokers (NASDAQ: IBKR) operates one of the world's largest online investing platforms for stocks, options, futures, and cryptocurrencies. Its stock has gained more than 700% since going public in 2007, and it was recently trading for more than $200. The company executed a 4-for-1 stock split in June, which increased its share count fourfold and reduced its price per share to just $50 at the time. Interactive is likely to continue creating value for investors over the long term, so here's why its stock might be a great buy right now. Interactive is experiencing an influx of new clients Interactive Brokers recently reported its operating results for the second quarter. The company had a record 3.87 million customers at the end of the period, which was a whopping 32% increase from the same time last year. Stock market volatility tends to attract new investors, and the second quarter had that in spades. On April 2, President Donald Trump announced a series of tariffs on America's trading partners, which contributed to a 19% plunge in the S&P 500 (SNPINDEX: ^GSPC) index as investors braced for a global economic slowdown. But by June 30, the president had paused the most aggressive aspects of his new trade policy, which led to a full recovery in the S&P -- and even a new high. The elevated volatility drove a staggering 49% year-over-year increase in Interactive's DARTs (daily active revenue trades) metric during Q2, which means clients were feverishly adjusting their portfolios amid the chaos. Customer equity also surged 34% to a new quarterly high of $664.6 billion by the end of the quarter. This represents the collective value of all the stocks, securities, and cash customers are holding on Interactive's platform. The new all-time high in the S&P 500 (and other market indexes) boosted the customer equity figure, but the influx of new clients was also a tailwind. Interactive earns commissions based on the value of every stock, cryptocurrency, options, and futures transaction executed by its clients, so a higher customer equity figure can directly translate into more revenue for the company. Interactive's commission revenue is growing rapidly Interactive Brokers generated $1.48 billion in total revenue during the second quarter, which was a 20% increase from the year-ago period. The company's revenue has two main components: Commission revenue, which Interactive earns by processing transactions for its clients. This came in at $516 million during the quarter, which was up 27% year over year. Net interest revenue, which is the interest Interactive earns on its own cash reserves, the cash it's holding for its clients, and on margin loans. This came in at $860 million during the quarter, up 9%. There is a third, much smaller component made up of other service fees and income, which came in at $104 million. Interactive's strong commission revenue growth reflects the surge in both trading volume and customer equity in the second quarter. Net interest revenue grew at a more modest pace because interest rates are currently lower than they were a year ago, after the Federal Reserve's three rate cuts near the end of 2024. Analyst expect the Fed to continue cutting rates in 2025 and 2026, which could eventually lead to declines in Interactive's net interest revenue, unless its margin loan book and cash balances climb significantly to offset them. Interactive stock could be a great long-term buy Interactive Brokers is highly profitable, delivering $0.51 in earnings per share (EPS) during the second quarter, representing growth of 24%. The result carried the company's trailing-12-month EPS to $1.94 (adjusted for its recent 4-for-1 stock split). That places its stock at a price-to-earnings (P/E) ratio of 32, which isn't exactly cheap considering the S&P 500 trades at a P/E ratio of 24.7. But the premium valuation might be justified considering the stock has consistently beaten the index since going public in 2007. As I mentioned at the top, Interactive stock is up by more than 700% since then, which translates to a compound annual return of 12.5%. That's better than the average annual return of 10.1% from the S&P 500 during the same period. It's possible Interactive's valuation becomes a barrier to further upside in the short term, but with quarterly customer growth of at least 30% for the past three consecutive quarters, soaring trading volumes, and record client equity, I think its stock is in a great position to continue beating the market over the long term. Thanks to the recent split, investors of all kinds have an opportunity to own one full share. 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 21, 2025 Anthony Di Pizio 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. This Unstoppable Stock-Split Stock -- Which Is Up 700% Since Its IPO -- Could Be the Ultimate Long-Term Buy was originally published by The Motley Fool
Yahoo
a day ago
- Business
- Yahoo
This Unstoppable Stock-Split Stock -- Which Is Up 700% Since Its IPO -- Could Be the Ultimate Long-Term Buy
Key Points Interactive Brokers operates one of the world's largest online investing platforms for stocks, options, futures, and cryptocurrency. Interactive stock has soared by more than 700% since it went public in 2007, prompting a 4-for-1 stock split last month. That incredible run of performance is likely to continue, based on Interactive's latest operating results. 10 stocks we like better than Interactive Brokers Group › When a company creates a significant amount of value over the long term, its stock price can soar into the hundreds or even thousands of dollars, which makes it difficult for the average retail investor to buy whole shares. But a stock split solves that by increasing the number of shares in circulation, which organically reduces the price per share by a proportionate amount. It doesn't change the underlying value of the company, it just makes the stock more accessible to smaller investors. Interactive Brokers (NASDAQ: IBKR) operates one of the world's largest online investing platforms for stocks, options, futures, and cryptocurrencies. Its stock has gained more than 700% since going public in 2007, and it was recently trading for more than $200. The company executed a 4-for-1 stock split in June, which increased its share count fourfold and reduced its price per share to just $50 at the time. Interactive is likely to continue creating value for investors over the long term, so here's why its stock might be a great buy right now. Interactive is experiencing an influx of new clients Interactive Brokers recently reported its operating results for the second quarter. The company had a record 3.87 million customers at the end of the period, which was a whopping 32% increase from the same time last year. Stock market volatility tends to attract new investors, and the second quarter had that in spades. On April 2, President Donald Trump announced a series of tariffs on America's trading partners, which contributed to a 19% plunge in the S&P 500 (SNPINDEX: ^GSPC) index as investors braced for a global economic slowdown. But by June 30, the president had paused the most aggressive aspects of his new trade policy, which led to a full recovery in the S&P -- and even a new high. The elevated volatility drove a staggering 49% year-over-year increase in Interactive's DARTs (daily active revenue trades) metric during Q2, which means clients were feverishly adjusting their portfolios amid the chaos. Customer equity also surged 34% to a new quarterly high of $664.6 billion by the end of the quarter. This represents the collective value of all the stocks, securities, and cash customers are holding on Interactive's platform. The new all-time high in the S&P 500 (and other market indexes) boosted the customer equity figure, but the influx of new clients was also a tailwind. Interactive earns commissions based on the value of every stock, cryptocurrency, options, and futures transaction executed by its clients, so a higher customer equity figure can directly translate into more revenue for the company. Interactive's commission revenue is growing rapidly Interactive Brokers generated $1.48 billion in total revenue during the second quarter, which was a 20% increase from the year-ago period. The company's revenue has two main components: Commission revenue, which Interactive earns by processing transactions for its clients. This came in at $516 million during the quarter, which was up 27% year over year. Net interest revenue, which is the interest Interactive earns on its own cash reserves, the cash it's holding for its clients, and on margin loans. This came in at $860 million during the quarter, up 9%. There is a third, much smaller component made up of other service fees and income, which came in at $104 million. Interactive's strong commission revenue growth reflects the surge in both trading volume and customer equity in the second quarter. Net interest revenue grew at a more modest pace because interest rates are currently lower than they were a year ago, after the Federal Reserve's three rate cuts near the end of 2024. Analyst expect the Fed to continue cutting rates in 2025 and 2026, which could eventually lead to declines in Interactive's net interest revenue, unless its margin loan book and cash balances climb significantly to offset them. Interactive stock could be a great long-term buy Interactive Brokers is highly profitable, delivering $0.51 in earnings per share (EPS) during the second quarter, representing growth of 24%. The result carried the company's trailing-12-month EPS to $1.94 (adjusted for its recent 4-for-1 stock split). That places its stock at a price-to-earnings (P/E) ratio of 32, which isn't exactly cheap considering the S&P 500 trades at a P/E ratio of 24.7. But the premium valuation might be justified considering the stock has consistently beaten the index since going public in 2007. As I mentioned at the top, Interactive stock is up by more than 700% since then, which translates to a compound annual return of 12.5%. That's better than the average annual return of 10.1% from the S&P 500 during the same period. It's possible Interactive's valuation becomes a barrier to further upside in the short term, but with quarterly customer growth of at least 30% for the past three consecutive quarters, soaring trading volumes, and record client equity, I think its stock is in a great position to continue beating the market over the long term. Thanks to the recent split, investors of all kinds have an opportunity to own one full share. 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 21, 2025 Anthony Di Pizio 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. This Unstoppable Stock-Split Stock -- Which Is Up 700% Since Its IPO -- Could Be the Ultimate Long-Term Buy was originally published by The Motley Fool
Yahoo
2 days ago
- Business
- Yahoo
Nvidia and Broadcom: Here's How These Top AI Stocks Are Doing 1 Year After Their Stock Splits
Key Points These leading AI players saw their shares skyrocket in the year prior to their stock splits, with levels reaching beyond $1,000. Nvidia and Broadcom both have reported soaring demand for their products. 10 stocks we like better than Nvidia › Stock splits were a big thing last year, with many major companies across industries launching such operations. Two of the most exciting were in the area of artificial intelligence (AI). Nvidia (NASDAQ: NVDA), the world's No. 1 AI chip designer, and Broadcom (NASDAQ: AVGO), a networking giant, completed stock splits in June and July 2024, respectively. What is a stock split, and why do companies go this route? These operations enable a company to bring down a soaring stock price to more reasonable levels, making the stock more accessible to a broader range of investors. Nvidia and Broadcom even said they decided on splits to make it easier for employees and investors to get in on their shares, which had surged more than 200% and about 100%, respectively, in 2023. Stock splits don't change the total market value of the company or anything fundamental, though. They simply involve offering more shares to current holders according to the ratio of the split. So, for example, in a 10-for-1 stock split, if you originally held one share, you would hold 10 shares post-split -- but the total value of your holding would remain the same. Because of this, a stock split alone isn't a reason to buy or sell a stock. Still, it's interesting to see how stock split players have performed a year after these operations, so let's take a look at both Nvidia and Broadcom a year after their splits. Nvidia Nvidia completed its 10-for-1 stock split on June 7 of last year, with shares trading at the split-adjusted price as of June 10. This brought the shares down from about $1,200 to $120. Since that time, Nvidia stock has experienced ups and downs, but it's delivered a gain of more than 40%. As mentioned, this operation isn't the reason investors have flocked to Nvidia over the past year (though a lower price per share may have made it easier for some to get in on the growth story). What has driven Nvidia's share price performance is the ongoing high demand for its graphics processing units (GPUs), or AI chips, and related products and services. What also helped this AI leader was its strong execution of a big launch: Nvidia released its Blackwell architecture and chip this past winter to demand that CEO Jensen Huang called "insane." The company generated $11 billion in revenue from Blackwell in its very first quarter of commercialization and maintained a gross margin above 70%, ensuring high profitability on sales. Although investors worried about potential headwinds, such as import tariffs or a decrease in AI spending, these concerns have eased. Trade talks have spurred optimism that tariffs may not be as hefty as initially expected, and companies have reiterated their AI investment plans. All of this helped boost Nvidia's shares in recent weeks, even pushing the company to a $4 trillion market cap, making it the first company ever to reach this level. Broadcom Broadcom executed its stock split on July 12, and the stock began trading on July 15 at the new price. Like Nvidia, the company decided on a 10-for-1 split to bring its share price down -- in this case, from about $1,700 to $170. Broadcom stock has also climbed in the double digits since the operation, rising more than 65%. And like Nvidia, Broadcom saw its shares take off thanks to demand from AI customers. This company is a networking leader, making thousands of products used in a variety of locations -- from your smartphone to major data centers. But in recent times, demand from big cloud service providers to support their AI development has helped revenue skyrocket. In the most recent quarter, AI revenue surged 77% to $4.1 billion, and the company says it expects this momentum to continue in the current quarter and through the next fiscal year. This is amid demand for both connectivity products and Broadcom's accelerated processing units (XPUs), a type of processor for specific AI tasks. The company says its networking expertise and wide range of products -- from switches and routers to network interface cards (NICs), which connect computers to networks -- have been key growth drivers as cloud service providers ramp up their AI platforms. Broadcom stock followed a similar path to Nvidia, declining in April of this year due to general tariff concerns, but it has also rebounded and is on the rise today. The stock even closed at a record high just a few days ago. Could the post-split success continue? Both Nvidia and Broadcom have completed successful post-split years, scoring double-digit gains. Nvidia is slightly less expensive from a valuation standpoint than it was a year ago, but Broadcom's valuation has advanced. Still, these AI players remain reasonably priced, considering their earnings track record and long-term prospects in this growth market. It's impossible, of course, to guarantee what these stocks will do next, but the current environment supports the idea of more gains ahead. Even more importantly, Nvidia and Broadcom are well positioned to win in the AI market over the long run. Should you buy stock in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia 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 Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Nvidia and Broadcom: Here's How These Top AI Stocks Are Doing 1 Year After Their Stock Splits was originally published by The Motley Fool
Yahoo
13-07-2025
- Business
- Yahoo
Fastenal (NasdaqGS:FAST) Declares US$0.22 Dividend Following Two-For-One Stock Split
Fastenal recently announced a dividend of $0.22 per share to be paid in August, following a two-for-one stock split effective in May 2025. Over the past quarter, Fastenal's stock price increased by 7%, aligning closely with the broader market's upward movement over the past year. The stock split and dividend declaration likely bolstered investor confidence, adding weight to Fastenal's performance. Despite a flat market over the last week, Fastenal's adjustments in shareholder returns and enhanced stock liquidity through the stock split could help sustain investor interest and align with anticipated earnings growth trends. We've spotted 1 weakness for Fastenal you should be aware of. The end of cancer? These 24 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. Fastenal's recent dividend announcement and planned stock split are strategic moves that could positively impact both investor sentiment and the company's operational outlook. The emitted confidence through these initiatives may enhance Fastenal's narrative by reinforcing investor trust as they aim to increase their digital and managed inventory capabilities, potentially driving efficiency gains and expanded revenue streams. Over the longer-term, Fastenal's shares have delivered a robust total return of 122.98% over the past five years, demonstrating significant growth compared to the stock's recent minor fluctuations. In the context of the last year, Fastenal has outperformed the US Trade Distributors industry, which saw a 12.1% return. The dividend and stock split could positively resonate with revenue and earnings forecasts, providing additional leverage as the company seeks to grow its digital presence and diversify supply chains. Analysts forecast revenue growth at 7.8% per year, with earnings projected to reach US$1.5 billion by May 2028. However, the current share price of US$78.50 presents a slight discount compared to the consensus price target of US$75.28. This relative parity suggests that analysts view the stock as fairly valued based on anticipated future growth. Nevertheless, potential fluctuations in trade dynamics and cost pressures may pose challenges, emphasizing the need for Fastenal to execute its strategic initiatives effectively. Examine Fastenal's earnings growth report to understand how analysts expect it to perform. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:FAST. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
