Josh Brown and Shawn Russo from Resortswell Management have drawn attention to Robinhood (Hood) with its impressive user growth and appealing approach to introducing investment to younger audiences. Over the past year, the stock has surged almost 400%, positioning itself as a significant player in the current bull market. Typically, more activity in this business means higher revenue and profit, and right now, Wall Street is buzzing with activity.
Then there’s Interactive Brokers (IBKR), which, being undervalued compared to Robinhood, seems to be catching up. Recently added to the S&P 500, IBKR now boasts a market cap of $28 billion, alongside other fintech players like Coinbase and Block in the S&P Financials sector. This addition will likely increase its analyst coverage and draw in more investment as these indices tend to attract further capital.
IBKR recently reported adding 250,000 new accounts, raising the total to 528,000 for the year, which surpasses earlier projections. Trading in options and futures has jumped by 24% and 18%, respectively, year on year, contributing to a healthy bottom line. Notably, the firm achieved a remarkable 75% pre-tax profit margin in the second quarter of 2025, an increase from 72% previously. Revenue has grown at a compound annual growth rate (CAGR) of 31% over three years, with expectations that it may continue to surge faster at a 41% CAGR.
Meanwhile, while Robinhood is pushing the industry towards innovation, IBKR is maintaining a competitive edge quietly, expanding into 24-hour trading. They noted an impressive 170% increase in overnight trading volume during their latest earnings call. Looking ahead, IBKR anticipates an 11% rise in revenue for October, with operating profit set to climb by 19% and earnings per share by 18%. It’s certainly not a stagnant financial stock.
Although IBKR trades at a premium relative to its earnings, it’s part of a larger trend where more people are trading. Regardless of whether it’s the sophisticated retail investors attracted by the around-the-clock access or professional traders relying on its services, IBKR is benefiting from this uptick in activity, which is reflected in its growing income statements and expanding margins.
On the risk management side, maintaining advance resistance after a breakout while keeping trading volume light could signal a successful retest. This suggests that traders are not overly aggressive at this point. Following its S&P index addition and the earnings report, IBKR’s stock performance has shown promise, although it maintains relative strength at around 50. The 50-day moving average sits at $60, and many believe a successful retest could pivot it back into a new trading range. A break above $65 might indicate a continuation of this trend, while long-term investors might consider $50 their threshold for stability.
Note: Opinions expressed in this content are those of individual contributors and do not represent any organizational stances. This article is intended solely for informational purposes and not as financial advice. Readers should consult their own financial advisors before making investment decisions.
