IBG, Inc.(IBKR) The Motley Fool·2024-10-21 08:27Market Performance and Client Growth - The bull market has significantly benefited Interactive Brokers, with its stock up 80% in 2024, outperforming the S&P 500's 23% return [1] - The company serves a record 3 1 million client accounts as of Q3 2024, a 31% increase year-over-year, marking the strongest quarter since the meme stock frenzy in Q1 2021 [2] - Client equity reached 1 36 billion, a 19% increase year-over-year, with commission revenue up 31% to 802 million in Q3 2024, but future growth may be hindered by Federal Reserve rate cuts [6] Financial Position and Valuation - Interactive Brokers had 35 2 billion in Q3 2024, up from $26 3 billion in the year-ago quarter [6] - Despite a 73% stock price gain in 2024, the company trades at a P/E ratio of 22 3, a 10% discount to the S&P 500's P/E of 24 7 [7] Future Outlook - Falling interest rates may pressure Interactive Brokers' interest revenue, but higher client equity and trading volumes could offset this decline [6][8] - Analysts expect no growth in earnings per share for 2025, but record commission revenue could support further stock price gains [7][8]