For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Interactive Brokers Group, Inc. (IBKR) ten years ago? It may not have been easy to hold on to IBKR for all that time, but if you did, how much would your investment be worth today?
With that in mind, let's take a look at Interactive Brokers Group, Inc.'s main business drivers.
Incorporated in 1977 and headquartered in Greenwich, CT, Interactive Brokers Group Inc. operates as an automated global electronic broker. The company specializes in routing orders and executing and processing trades in securities, futures, foreign exchange instruments, bonds, mutual funds, exchange-traded funds (ETFs) and precious metals on more than 150 electronic exchanges and market centers in 34 countries and 27 currencies. Additionally, customers can use the company’s trading platform to trade certain cryptocurrencies through third-party cryptocurrency service providers.
In the United States, Interactive Brokers conducts its business primarily from Greenwich and Chicago. Across the globe, it conducts business through offices in Canada, the U.K., Ireland, Switzerland, Hungary, India, China (Hong Kong and Shanghai), Japan, Singapore, and Australia. As of Dec. 31, 2024, the company had approximately 2,950 employees.
Since 2017, the company has been working continuously to wind down its Market Making segment and focus more on the Electronic Brokerage segment. In 2020, Interactive Brokers announced that its market-making activities were almost insignificant and hence decided not to report its operations through two separate segments.
Prior to its IPO in 2007, Interactive Brokers conducted business through a limited liability company (LLC) structure. In connection with the IPO, the company purchased 10.0% of the membership interest in IBG LLC. As of Dec. 31, 2024, Interactive Brokers’ primary assets were its ownership of 25.8% of the membership interests in IBG, Inc. The remaining 74.2% of the membership interests were held by IBG Holdings LLC.
As of Dec. 31, 2024, Interactive Brokers had $150.5 billion in total assets, $3.6 billion in cash and cash equivalents and $16.6 billion in total equity. As of the same date, the company’s total customer accounts were 3.34 million and total customer Daily Average Revenue Trades (DARTs) were 3.12 million.
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Interactive Brokers Group, Inc. if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in February 2015 would be worth $7,105.44, or a gain of 610.54%, as of February 10, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 193.17% and the price of gold went up 122.76% over the same time frame.
Analysts are anticipating more upside for IBKR.
Shares of Interactive Brokers have outperformed the industry in the past six months. Its fourth-quarter 2024 results show higher revenues driven by growth in customer accounts and a rise in daily average revenue trades (DARTs). Its efforts to develop proprietary software, lower compensation expenses relative to net revenues, enhance emerging market customers and global footprint, and relatively high rates are expected to continue to support revenue growth. However, elevated operating expenses (owing to technology upgrades and investments) are expected to hurt bottom-line growth to some extent. High reliance on international revenues is a major concern. Yet, the company’s initiatives to expand its product suite and the reach of its services will support financials. Its capital distributions seem sustainable, given a solid liquidity position.
Shares have gained 24.80% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
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