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Interactive Brokers - AI Stock Analysis

Analysis generated February 26, 2025

Interactive Brokers Group, Inc. (NASDAQ: IBKR) is one of the leading and most innovative brokerage firms in the world. The company offers a comprehensive range of financial services, from executing trades to custody management and much more, primarily targeting institutional and professional traders. The company's sophisticated trading platform is a hallmark of its service, catering to both individual and institutional clients across the globe.

Fundamental Analysis

Revenue: For the last quarter, Interactive Brokers posted revenues of $1.8 billion. This represents a 10.02% increase compared to the previous quarter, signaling strong short-term growth. However, on a yearly comparison to the same quarter last year, revenue declined by 12.41%. This year-over-year decline could be a concern pointing to underlying challenges or market conditions.

Net Income: The net income for the last quarter was $184 million, showing a 2.79% increase compared to the previous quarter and a 10.18% increase compared to the same quarter last year. Positive year-over-year growth in net income is generally a good indicator of the company's sustained profitability.

EBITDA: The company reported an EBITDA of $2.02 billion for the last quarter, marking a 3.11% rise from the previous quarter and a 12.91% improvement year over year. The substantial year-over-year growth in EBITDA suggests strong operational efficiency and profitability.

P/E Ratio: Interactive Brokers has a current P/E ratio of 29. This is on the higher side, potentially indicating that the stock is overvalued, which can result in a bearish outlook. Investors typically prefer a lower P/E ratio for perceived better value.

Technical Analysis

Stock Price: Today's stock price is $206.66, which represents a 5.63% decrease compared to a month ago, a short-term concern. However, over a longer period, the stock price has increased by 94.17% compared to a year ago, indicating a positive long-term trend.

Simple Moving Average (SMA): The current SMA10 is 220.66, slightly down from the previous SMA10 of 223.41. This downward adjustment suggests a potential short-term bearish trend in price movement.

Relative Strength Index (RSI): The RSI is currently 61.1, indicating a neutral condition. CSI values close to 70 imply an overbought condition, and values around 30 suggest an oversold condition. A neutral RSI indicates neither extreme at this time.

Alternative Data Analysis

Job Postings and Employee Sentiment: Interactive Brokers currently has 168 open positions, a 37% increase over the last couple of months. This increase in job postings indicates the company's expansion efforts. Employee sentiment remains neutral, suggesting a stable working environment.

Customer Acquisition: Interactive Brokers attracts approximately 9.8 million visitors to its webpage monthly, with no significant changes in recent months. Stability in web traffic points to consistent customer interest.

Customer Engagement: The company has seen a 13% increase in its Instagram followers, now totaling 74,000 followers. This increase highlights growing interest in the company. On Twitter, the follower count stands at 430,000 with no meaningful short-term changes.

AI Score: According to AltIndex's AI score, which analyzes fundamental, technical, and alternative data, Interactive Brokers has an AI score of 74, which signals a buy recommendation.

Conclusion

Based on the analysis, Interactive Brokers exhibits mixed but overall positive indicators. The company's strong year-over-year increase in net income and EBITDA suggest well-maintained profitability, although the revenue decline year-over-year could be a concern. The high P/E ratio might indicate an overvalued stock, potentially warning a bearish outlook. Technically, the significant long-term stock price increases are positive, even as short-term metrics hint at a bearish trend. Alternative data suggests a company in growth mode, with increased job postings and rising customer engagement. AltIndex's AI score further bolsters the positive outlook, signaling a buy recommendation.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.