China's reliance on ASML EUV technology is its 'biggest moat': Analyst
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Prediction: Interactive Brokers Stock Will Soar Over the Next Decade
Key Points Interactive Brokers' recent top- and bottom-line growth helps justify the stock's increased valuation multiple. The company has incredible momentum in customer account growth. The online broker relies on proprietary automation to streamline operations and fuel growth. 10 stocks we like better than Interactive Brokers Group › While artificial intelligence stocks like Nvidia and Palantir may be the darlings of 2025's stock market headlines, another under-the-radar stock deserves similar attention. Even better, unlike Nvidia and Palantir, this stock still looks undervalued. Interestingly, this isn't even a tech stock. It's a financial company. I'm referring to the online stock brokerage Interactive Brokers (NASDAQ: IBKR). With its soaring revenue and profits, as well as its impressive customer account growth, this company's momentum looks poised to persist. Indeed, given the company's history of execution, its recent uptick in customer accounts, and its competitive advantage as a low-cost operator, it's highly likely that this stock will soar over the next decade. Stellar second-quarter results With shares of Interactive Brokers rising about 35% year to date going into the company's second-quarter earnings report last week, it's safe to say that expectations were elevated. Fortunately, the pureplay brokerage business, which prides itself on automation and low costs, delivered. Total revenue, driven primarily by a 27% year-over-year increase in commissions, rose more than 20% year over year. Earnings per share increased more than 24% year over year. Strong fundamentals like this importantly help support the growth stock's boosted valuation multiple. Shares now trade at a price-to-earnings multiple of 33, up from about 25 at the start of the year and from 20 at the lows during April's market sell-off. Momentum where it matters most To understand the bull case for Interactive Brokers, however, investors have to look beyond the company's reported revenue and earnings-per-share growth. Capturing its momentum is the online brokerage's strong customer metrics. Starting with the lifeblood of Interactive Brokers' business, its customer accounts increased an impressive 32% year over year during the quarter, rising to 3.87 million. The company's investments in automation are helping. "Our application processing is highly automated and continually becoming even more so, explained Interactive Brokers Director of Investor Relations Nancy Stuebe during the company's second-quarter earnings call, "allowing us to handle surges in new accounts efficiently, without adding significantly to our headcount or cost base." The company has added 528,000 customers in 2025 alone. Additionally, increased customer activity is helping. Total daily average revenue trades (DARTs) during the quarter rose 49% year over year to 3.55 million. Lately, activity has been aided by a volatile stock market. The period included April's sell-off and the subsequent V-shaped recovery in the stock market. "Volatility and uncertainty often spark increased market activity," Stuebe explained during the earnings call. "Combined with our strong net new account growth, this led to our client trading volumes expanding for stocks, options, and futures." Though it's worth noting that robust customer momentum isn't new for Interactive Brokers. The company consistently grows its customer accounts at strong, double-digit growth rates, regardless of the quarter's volatility. While recent customer account growth rates and DART growth are unlikely to be sustainable, investors should at least expect double-digit growth rates in the teens or better in both key customer metrics for the next few years and beyond. The bull case Overall, Interactive Broker's robust customer momentum, when combined with the company's highly automated operation, is a recipe for strong earnings growth for years to come. Of course, there are risks. If competing brokerages can replicate Interactive Brokers' automation, for instance, they could reverse their market share losses and ultimately slow Interactive Brokers' growth. Further, more than half of the company's revenue is currently generated from net interest income. If the Federal Reserve lowers interest rates, this line item will likely be hurt. Even with these risks, Interactive Brokers' strong customer momentum should easily offset declines in net interest income over the long haul. Furthermore, competition will likely struggle to replicate Interactive Brokers' secret recipe for automation -- a proprietary process the company has perfected over decades. While there's no guarantee that the stock will beat the market over the long haul, it seems likely. Given the stock's historical volatility, it will likely be a bumpy ride, but probably a worthwhile one. Do the experts think Interactive Brokers Group is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Interactive Brokers Group make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,034% vs. just 180% for the S&P — that is beating the market by 853.75%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group, Nvidia, and Palantir Technologies. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. Prediction: Interactive Brokers Stock Will Soar Over the Next Decade was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Biyoute and Relex to enhance supply chain operations
Biyoute Trading, a major retailer in northeast China, has engaged Relex Solutions to overhaul its supply chain and retail planning operations. Relex will deploy a platform to enhance demand forecasting, replenishment planning and optimisation of perishables for Biyoute's more than 100 stores, seven distribution centres, and more than 25,000 stock keeping units. The move is part of an effort to create advanced supply chain frameworks within the Chinese grocery industry. The partnership with Relex aligns with Biyoute's objective of expanding its retail footprint and achieving significant revenue milestones. It also contributes to the digital evolution of China's wider retail landscape. The technology implementation spans all merchandise categories, including perishables, providing Biyoute with a comprehensive solution for end-to-end supply chain management. The system will enable precise predictions of store-level demand and develop replenishment strategies to individual store inventories, ensuring efficient logistics and timely stock refreshment. Biyoute chairman Meng Fanzhong stated: 'Throughout our history, Biyoute has consistently adhered to three strategic values: first, providing one-stop shopping for household fast-moving consumer goods; second, pursuing extreme cost-performance ratio; and third, earning customer trust. 'All three depend critically on the efficiency, resilience and flexibility of our supply chain. Biyoute's future development requires professional partners like Relex, and I have great expectations for this cooperation.' The initiative will centralise decision-making processes that were previously decentralised, transitioning from reactive responses to supply chain issues towards a forward-looking planning model with predictive analytics. This strategy aims to pre-emptively address challenges, enhance inventory turnover rates, minimise stockouts and perishable waste, and optimise operational costs. Supporting this venture is Beijing Times Consulting, a local consultancy with prior experience assisting Biyoute in refining its distribution practices. Together with Relex, Beijing TCBC will pool resources and expertise to further improve Biyoute's supply chain performance. Relex Solutions co-founder Michael Falck stated: 'The partnership with Biyoute is a key milestone in Relex's commitment to the Chinese market. Through this collaboration, we have gained deeper understanding of local grocers' supply chain operations. 'Biyoute's dedication to data-driven and lean operations highly aligns with Relex's philosophy. We will fully leverage our global supply chain optimisation experience, combined with Biyoute's local operational expertise, to support their development strategy.' "Biyoute and Relex to enhance supply chain operations" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
