Interactive Brokers (IBKR) saw its shares tumble 5.34% in after-hours trading on Wednesday, as investors reacted to two significant developments that shook confidence in the online brokerage firm.

The primary catalyst for the sell-off was the revelation that Interactive Brokers' Founder and Chairman, Thomas Peterffy, had acquired a substantial 25.9% stake in conservative media outlet Newsmax. This unexpected $6.2 billion investment, made through Conyers Investments, positions Peterffy as Newsmax's second-largest shareholder. The move raised concerns among investors about potential conflicts of interest and distractions from Interactive Brokers' core business operations.

Adding to the downward pressure, Citigroup analysts cut their price target for Interactive Brokers from $242 to $215. While the specific reasons for the downgrade were not immediately clear, such actions by major financial institutions often lead to short-term selling pressure as investors reassess their positions. The combination of these two factors likely contributed to the significant after-hours decline in IBKR's stock price. As markets digest these developments, investors will be closely watching how Interactive Brokers addresses concerns about its chairman's large stake in a media company and whether the firm can maintain its focus on its core brokerage business amidst these distractions.