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Interactive Brokers - AI Stock Analysis

Analysis generated January 30, 2025

Interactive Brokers LLC is an American multinational brokerage firm. It operates the largest electronic trading platform in the U.S. by a number of daily average revenue trades. The company is headquartered in Greenwich, Connecticut, and was founded by Thomas Peterffy. It provides a direct market access platform for trading equities, options, futures, fixed income, and foreign exchange. Virtually all aspects of the firm's business model, including trade execution, portfolio management, and risk exposure assessment, are driven by proprietary algorithms, offering clients highly efficient and precise trading capabilities.

Fundamental Analysis

Interactive Brokers reported revenue of $1.8 billion for the last quarter. This is an increase of 10.02% compared to the quarter before it, signifying a positive growth trajectory on a quarter-over-quarter basis. However, compared to the same quarter last year, there is a decrease of 12.41%, which may raise concerns about the year-over-year performance.

The net income for the last quarter stood at $184 million, a 2.79% increase from the previous quarter and a substantial 10.18% increase compared to the same quarter last year. This showcases consistent profitability and positive growth year-over-year.

Interactive Brokers reported an EBITDA of $2.02 billion, marking a 3.11% increase from the prior quarter and a 12.91% year-over-year increase. This indicates robust operational efficiency and increasing profitability.

The current P/E ratio is 30.44. This may be considered relatively high, potentially indicating that the stock is overvalued and suggesting a bearish outlook from a valuation perspective.

Technical Analysis

Today's stock price is $211.25, reflecting an 18.05% increase compared to a month ago. This indicates a strong positive short-term trend. Additionally, over the past year, the stock price has surged by 139.49%, suggesting a favorable long-term trend and a bullish outlook.

The 10-day Simple Moving Average (SMA-10) currently stands at 210.23, an improvement from the previous SMA-10 of 208.11. This suggests a potential upward trend in the stock's price movement.

The Relative Strength Index (RSI) is at 83.2, indicating that the stock may be in overbought territory. This could be interpreted as a bearish signal, suggesting potential downward pressure in the near future.

Alternative Data Analysis

Interactive Brokers currently has 154 open positions according to the most popular job boards. The number has been stable over the last couple of months, indicating steady operations with no significant hiring spikes or reductions.

The estimated webpage visitors amount to 9.4 million, up by 19% in the last couple of months. This implies increased interest and potential customer acquisition, reflecting a bullish trend.

Customer engagement data shows Interactive Brokers has 71,000 followers on Instagram, up by 14% over the last couple of months. This growth in social media followers indicates rising interest and positive sentiment towards the company.

On Twitter, Interactive Brokers has a stable count of 430,000 followers, showing no significant changes recently.

Furthermore, according to AltIndex, an AI-powered predictive score, Interactive Brokers has an AI score of 73. This score falls in the 'buy' category, indicating a positive sentiment based on fundamental, technical, and alternative data analysis.

Conclusion

Interactive Brokers demonstrates robust operational performance with substantial revenue and net income growth on both a quarterly and yearly basis. While the high P/E ratio may point to potential overvaluation, the company's strong financial fundamentals and an upward-trending stock price suggest bullish sentiment. Despite the RSI indicating an overbought condition, alternative data such as job postings, customer acquisition trends, and customer engagement provide additional support to the company's positive outlook. Therefore, based on a comprehensive analysis across different dimensions, Interactive Brokers appears to be a 'buy'.

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.