Interactive Brokers Stock Grew $10K to ~$110K in Ten Years Amid Rapid Customer Growth
Over the past decade, a $10,000 investment in Interactive Brokers (NASDAQ:IBKR) has grown into approximately $110,000. The stock price alone rose from around $8.82 at the end of September 2016 to about $91 today, representing roughly tenfold growth before factoring reinvested dividends. Interactive Brokers outperformed the S&P 500 index over this period, delivering an annualized return of approximately 27% compared to around 15%. This strong performance was driven by a rapidly expanding customer base and increased interest income from client cash balances. The company's number of accounts grew nearly 15-fold since September 2016. The firm also transformed its business model, exiting the options market-making segment in 2017 to focus on more profitable operations. As a result, net interest income became Interactive Brokers' largest revenue source and significantly increased from $527 million in 2016 to over $3.5 billion last year.
Tickers: $IBKR
Topics: customer growth dividend reinvestment stock performance