Interactive Brokers Targets Utilities While Robinhood Bets on Sports Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Benzinga
- IBKR Strategic Shift: During the Q4 earnings call, Peterffy emphasized that Interactive Brokers does not rely on sports betting but focuses on temperature contracts for utilities, expecting to onboard institutional clients within the year, thereby enhancing its market share.
- Surge in Trading Volume: IBKR traded 286 million contract pairs in Q4, a significant increase from 15 million in Q3, with over 10,000 financial instruments listed on the platform, indicating strong growth potential in the prediction market.
- Robinhood's Risk Exposure: Robinhood's heavy bet on the sports market exposes it to regulatory risks, especially after a Massachusetts court ruled Kalshi's sports contracts as illegal gambling, potentially leading to loss of significant markets and impacting future revenues.
- Uncertain Market Outlook: The prediction market reached $63.5 billion in volume last year, up 302%, but Robinhood's reliance on Kalshi presents regulatory challenges that differ starkly from IBKR's approach, leaving its future profitability in question.
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Analyst Views on IBKR
Wall Street analysts forecast IBKR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IBKR is 81.43 USD with a low forecast of 75.00 USD and a high forecast of 91.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 75.450
Low
75.00
Averages
81.43
High
91.00
Current: 75.450
Low
75.00
Averages
81.43
High
91.00
About IBKR
Interactive Brokers Group, Inc. is an automated global electronic broker. The Company custodies and services accounts for hedge and mutual funds, exchange-traded funds (ETFs), registered investment advisors, proprietary trading groups, introducing brokers and individual investors. It specializes in routing orders and executing and processing trades in stocks, options, futures, foreign exchange instruments (forex), bonds, mutual funds, ETFs, precious metals, and forecast contracts on more than 160 electronic exchanges and market centers in 36 countries and 28 currencies around the world. In addition, its customers can use its trading platform to trade certain cryptocurrencies through third-party cryptocurrency service providers that execute, clear and custody the cryptocurrencies. Its trading platforms include IBKR Desktop, IBKR Trader Workstation, IBKR Mobile, IBKR Client Portal and others. Its key product offerings include IBKR Pro, IBKR Lite, and IBKR Universal Account.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Interactive Brokers Achieves Record Performance in 2025
- Client Account Growth: By the end of 2025, Interactive Brokers had 4.4 million client accounts, a 32% increase year-over-year, indicating strong performance in attracting new investors and solidifying its market position.
- Surge in Customer Equity: Customer equity soared by 37% to $779.9 billion in 2025, reflecting increased client confidence in the market, which translates into higher commission revenue for the company.
- Rising Trading Activity: In Q4 2025, Interactive Brokers processed an average of 4.04 million transactions daily, a 30% year-over-year increase, enhancing the company's revenue potential and indicating heightened market activity.
- Revenue and Earnings Growth: In 2025, Interactive Brokers generated $6.2 billion in total revenue, a 19.5% increase, with commission revenue rising 26.6% to $2.1 billion, demonstrating the company's sustained profitability in a strong market environment.
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Interactive Brokers Reports Strong 2025 Performance
- Client Account Growth: By the end of 2025, Interactive Brokers had reached 4.4 million client accounts, a 32% increase year-over-year, indicating the company's success in attracting new investors and further solidifying its market position.
- Record Revenue: In 2025, Interactive Brokers generated a total revenue of $6.2 billion, a 19.5% increase from the previous year, primarily driven by increased client equity and surging trading activity, showcasing the company's strong market performance.
- Surge in Trading Activity: During the fourth quarter of 2025, Interactive Brokers processed an average of 4.04 million transactions daily, representing a 30% year-over-year increase, reflecting strong client interest and activity in the market, which bodes well for future revenue growth.
- Interest Rate Risk: Despite strong performance in client loans and asset growth, the Federal Reserve has cut interest rates six times since September 2024, which could pressure the company's net interest income, necessitating close monitoring of future market dynamics.
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