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Interactive Brokers - AI Stock Analysis
Analysis generated July 16, 2024
Interactive Brokers Group, Inc. is a prominent electronic brokerage firm, known for offering a diverse range of financial assets for trading on over 135 market destinations worldwide. Founded in 1978, Interactive Brokers has pioneered the automation of the trading process and provides advanced trading technology for traders, investors, and institutions. The company prides itself on its fast execution, advanced trading algorithms, and low-cost fee structure, which have positioned it as a competitive player in the brokerage industry.
Fundamental Analysis
Revenue: The revenue for the last quarter stood at $2.22 billion, marking an increase of 5.32% compared to the previous quarter. This is a significant improvement and points towards steady growth. An even more impressive measure is the year-over-year growth of 25.48%, suggesting that Interactive Brokers is expanding rapidly.
Net Income: The net income for the last quarter was $175 million, reflecting an increase of 9.38% compared to the previous quarter. This figure also saw an 18.24% year-over-year increase, reinforcing the company's growing profitability.
EBITDA: The EBITDA for the last quarter was an astounding $1.91 billion, with a massive increase of 423.98% compared to the previous quarter. Year-over-year, the EBITDA grew by 148.37%. These are phenomenal numbers that indicate that the company's operating performance is robust.
P/E Ratio: Currently, Interactive Brokers has a P/E ratio of 20.75. This ratio is within the normal range, presenting a balanced perspective. It neither leans towards being overvalued nor undervalued, placing the stock in a neutral position.
Technical Analysis
Stock Price: Today's stock price is $123.66, which represents a 2.93% increase compared to one month ago and a 48.34% increase from a year ago. This indicates a positive short-term and long-term trend.
Trend Indicator: Despite the price increase, the overall trend is currently bearish. The current SMA10 is 123.17, slightly lower than the previous SMA10 of 123.20. This small difference suggests potential downward movement.
RSI: The RSI (Relative Strength Index) is at 63.1, indicating a neutral condition. This value suggests that the stock is neither overbought nor oversold.
Alternative Data Analysis
Job Postings and Employee Sentiment: Interactive Brokers has 168 open positions, which is up by 19% in the last couple of months. This increase indicates that the company is in a growth phase, expanding its workforce to meet business demands.
Business Outlook: The business outlook has seen a 10% positive trend in the last couple of months. This is a healthy indicator of expected future growth.
Customer Acquisition: The estimated 7.6 million visitors to their webpage is down by 30% in the last couple of months. This is a concerning trend as it might indicate a decline in customer acquisition.
Customer Engagement: On Instagram, the follower count increased by 12% to 54,000, suggesting enhanced customer interest. Conversely, their Twitter follower count decreased by 7% to 410,000, indicating a drop in engagement.
AI Score: Interactive Brokers has an AI score of 55, which is a hold signal. This score consolidates fundamental, technical, and alternative data to provide an aggregate sentiment on the stock's potential.
Conclusion and Recommendation
Interactive Brokers exhibits strong fundamental growth with impressive increases in revenue, net income, and EBITDA. The company's technical indicators show a mixed bag, with short-term and long-term upward trends in stock price clashing against bearish SMA trends. In terms of alternative data, employee sentiment and increased job postings suggest a company poised for growth, yet declining webpage visitors and mixed social media engagement pose some risks.
The overall analysis, rounded out by an AI score of 55, suggests a hold recommendation. Investors should closely watch for shifts in key metrics, particularly in customer acquisition and SMA trends, to make a more informed decision in the near future.
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.
