News about Interactive Brokers

The S&P 500 trades at a Shiller CAPE ratio of 41, and the article argues that risks to the bull market are mounting after the Fed hiked rates and September CPI inflation reached 3.7%. It contends that Interactive Brokers (IBKR) could benefit from periods of heightened volatility. The brokerage reported a record 5.58 million client accounts at the end of the third quarter, up 35% year over year, while margin loan balances rose 36% to $105.2B. Third-quarter revenue reached $1.91B, up 15%, led by a 19% rise in net interest income to $1.15B and a 12% rise in commission revenue to $602 million. The stock trades at a trailing P/E of 31.6 versus 23.5 for the S&P 500, while Wall Street's average estimate of $3.31 in 2027 earnings per share implies a forward P/E of 24.9.

The S&P 500's Shiller CAPE ratio is 41, second only to the dot-com bubble peak, and the author notes rising risks to the bull market, including Fed rate hikes and turbulence in AI stocks. Interactive Brokers (IBKR) is presented as a likely beneficiary of volatility; it reported a record 5.58 million client accounts at the end of Q3, up 35%, with client equity up 27% to $964.7 billion and margin loans up 36% to $105.2 billion. Q3 revenue rose 15% to $1.91 billion, led by net interest income of $1.15 billion (up 19%) and commissions of $602 million (up 12%). The stock trades at a P/E of 31.6, above the S&P 500's 23.5, but at 24.9 times the $3.31 per-share 2027 estimate, which the author argues could make it look cheaper.