If You Invested $1000 in Interactive Brokers Group, Inc. a Decade Ago, This is How Much It'd Be Worth Now

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and 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?Interactive Brokers Group, Inc.'s Business In-DepthWith 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 market maker and broker. The company specializes in routing orders, besides executing and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on more than 150 electronic exchanges and market centers worldwide.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 Sept. 30, 2024, the company had 2,969 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 April 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 Sept. 30, 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 Sept. 30, 2024, Interactive Brokers had $148.5 billion in total assets, $3.6 billion in cash and cash equivalents and $16 billion in total equity. As of the same date, the company’s total customer accounts were 3.12 million and total customer Daily Average Revenue Trades (DARTs) were 2.7 million.Bottom LineWhile anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Interactive Brokers Group, Inc. ten years ago, you're probably feeling pretty good about your investment today.According to our calculations, a $1000 investment made in January 2015 would be worth $6,622.65, or a gain of 562.26%, as of January 7, 2025, and this return excludes dividends but includes price increases.Compare this to the S&P 500's rally of 198.38% and gold's return of 108.87% over the same time frame.Going forward, analysts are expecting more upside for IBKR. Shares of Interactive Brokers have outperformed the industry in the past six months. 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. We project total net revenues (GAAP) to see a CAGR of 7.6% by 2026. 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. However, elevated operating expenses (owing to technology upgrades and investments in franchise) are expected to hurt bottom-line growth to some extent. Our estimates for total non-interest expenses imply a CAGR of 2.5% by 2026. High reliance on international revenues is a woe. Over the past four weeks, shares have rallied 5.49%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2024 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks