Latest news with #Robinhood
Yahoo
3 hours ago
- Business
- Yahoo
Should You Buy This Stock-Split Stock Disrupting the Brokerage Market?
Interactive Brokers is gaining steam in its disruption of the stock brokerage sector. The company has world-class profit margins because of its lean operating structure and focus on automation and technology. IBKR stock looks like a buy after its latest stock split. 10 stocks we like better than Interactive Brokers Group › Smartphones have enabled investing to reach the masses, driven by the viral growth of the Robinhood Markets trading application. It now has over 25 million customers and was only incorporated in 2013. Everyone knows about Robinhood, but another disruptive stock brokerage platform is gaining rapid share of the investment community, coming at the industry from a different angle: Interactive Brokers (NASDAQ: IBKR). Known as IBKR for short, the company has grown its client equity at a rapid rate over the last decade as sophisticated investors flock to the platform. Its stock price has soared in response to these gains, leading management to split its stock on June 16. Does this make IBKR the perfect stock-split stock to add to your portfolio today? Here's why the gains for the advanced brokerage platform should continue in the years ahead. Usage of Robinhood and other simplified trading applications soared during the pandemic's height before stalling in the bear market of 2022. At the end of 2021, Robinhood had 22.7 million customer accounts, only slightly below the number of accounts it has today, and that's with aggressive marketing spend and promotional programs. Many of these customers were initially beginners, but have since turned into investors looking for a more advanced brokerage platform. This was a perfect situation for IBKR to take this small but highly valuable customer base away from Robinhood-type brokerages. Growth of active accounts on IBKR has been steady for the last decade, hitting 300,000 in 2015, 1.1 million in 2020, and 3.6 million as of its latest first-quarter update. Why is IBKR gaining market share? It's offering individuals a wide breadth of assets to trade that were historically only reserved for professional investment funds. This includes easy international trading in over 100 markets, foreign currency trading, bonds, and options, all with affordable fees and commissions. In recent years, it has tried to move both up and down market from its first core customers. It launches the IBKR Lite trading application with commission-free trades and IBKR's white glove services for large advisory firms and hedge funds. IBKR Lite is going for Robinhood customers who are just getting into investing, while the white glove service is for large professional funds that typically use legacy brokerages for trading. With 3.6 million active accounts, IBKR is nowhere near the market leader in brokerage services. This is a good thing. Over the next decade, it can take its historical playbook and keep taking market share from competitors because of its breadth of services at affordable prices. For reference, Charles Schwab has 37 million active accounts, or more than 10x IBKR's number today. This is a huge opportunity for IBKR to steadily convince investors to switch to its platform, with its wider breadth of trading capabilities. IBKR's growth has been incredible. It had client equity -- which is the total net asset value of all its customers' portfolios -- of $32.9 billion in 2012. Today, that figure has grown to $573.5 billion, or an annual growth rate of 26.3%. This not only shows that IBKR is able to convince investors to switch to its platform, but that it's more valuable revenue-wise than the average trader. Using its total client equity and total active accounts, the average IBKR account has client equity of $159,000, which is much higher than Robinhood's average account level of under $10,000. What makes this growth even more impressive is how efficiently the company operates from an expense and advertising basis. Last quarter, IBKR had a pre-tax profit margin of 74%, making it one of the most profitable businesses in the world by margin. It's able to do so because of its advanced technology capabilities that let it run automated brokerage functions, such as making margin calls on customers. It doesn't have to spend a boatload on marketing like Robinhood because of its superior product. This efficiency and growth add up to $793 million in net income generated for IBKR over the last 12 months, up over 200% in the last three years. Today, IBKR has a market cap of $22 billion. That measures the value of IBKR for its non-controlling interests that sit with the founder Thomas Peterffy and his family. It's this market value that you're buying as an outside investor. While a stock split doesn't change anything about the fundamental analysis of IBKR, I believe now is as good a time as any to buy shares of this disruptive brokerage platform. The stock currently trades at a price-to-earnings ratio (P/E) of 28, which does look expensive at first glance. However, investors should remember that IBKR has impressive track records of earnings growth and of acquiring clients to the platform. Today, IBKR's net income applied to common shareholders is $793 million. If that figure triples again over the next five years -- just as it has in the past three -- it will grow to around $2.4 billion, bringing the trailing P/E ratio to under 10. For those with a longer time horizon, IBKR stock looks like a wonderful buy at these prices. Buy shares, hold on tight, and wait patiently for wealth to build in your portfolio. Before you buy stock in Interactive Brokers Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Interactive Brokers Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Charles Schwab is an advertising partner of Motley Fool Money. Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends Charles Schwab and recommends the following options: long January 2027 $175 calls on Interactive Brokers Group, short January 2027 $185 calls on Interactive Brokers Group, and short June 2025 $85 calls on Charles Schwab. The Motley Fool has a disclosure policy. Should You Buy This Stock-Split Stock Disrupting the Brokerage Market? was originally published by The Motley Fool
TechCrunch
12 hours ago
- Business
- TechCrunch
Why Robinhood's co-founder is betting on solar power from space
As the co-founder of Robinhood, Baiju Bhatt helped redefine how millions of people interact with trading and investing. Now he's setting his sights even higher — literally — with Aetherflux, a new venture aiming to harness solar power in space. In this chat, Bhatt talks about what drew him to one of the most audacious bets in tech, how building in hard science compares to fintech, and why big risks still matter. Bhatt joined TechCrunch at our StrictlyVC Menlo Park event in June 2025, among several other speakers whose discussions you can find here.
Yahoo
12 hours ago
- Business
- Yahoo
Veteran fund manager misses more than just Tesla
Veteran fund manager misses more than just Tesla originally appeared on TheStreet. Markets are not having it after investor Raoul Pal cited a rally in stocks such as Robinhood (HOOD), Coinbase (COIN), and Rocket Lab (RKLB) as part of his RV Pro portfolio. The RV Pro portfolio is a premium investment strategy by Raoul Pal's Real Vision platform comprised of high-conviction trades, typically around macro and tech, and digital assets. Raoul Pal is a former hedge fund manager and the co-founder and CEO of Real Vision. This financial media platform offers in-depth interviews and analysis on global macroeconomic trends, cryptocurrency, and other investment topics. He worked at Goldman Sachs and GLG Partners, where he is known for being among the first to be bullish on Bitcoin and Ethereum. Part of it is being "spent," and part of it is "going vertical," Pal said, theorizing that the next leap for this liquidity wave could be into the crypto markets. "The liquidity spigot is wide, wide open," he said, suggesting the potential for a more widespread rally supported by high investor optimism and inflows of money. However, while Pal was excited, the data suggests otherwise. Though the Solana-based HOOD crypto token — not affiliated with Robinhood — was up over 9.8% in 24 hours, Robinhood stock was volatile. Join the discussion with CryptoWendyO on. Rocket Lab is down 1.44%, and Coinbase was down sharply, 5.49%. The declines may suggest profit-taking or an investor's perception of the data's regression or ambiguity. Similarly to Tesla (TSLA), which Pal anticipates will break out in a major way, Tesla has not broken out yet. At press time, Tesla is trading at $319.32 and is down more than 2% from the day before. Simply put, institutional investors are betting that riskier assets, including cryptocurrencies, can appreciate as capital continues to flow in. The reality is that price movements are real and not every "vertical" price move lasts. Veteran fund manager misses more than just Tesla first appeared on TheStreet on Jun 27, 2025 This story was originally reported by TheStreet on Jun 27, 2025, where it first appeared. Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
Yahoo
14 hours ago
- Business
- Yahoo
Robinhood co-founder's big bet on solar energy
Most investors would know Baiju Bhatt as the co-founder of Robinhood. He still sits on the company's board. But now, he has a new venture called Aetherflux. The startup aims to transmit solar energy through satellites. Bhatt he explains how it works to Yahoo Finance Executive Editor Brian Sozzi. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Robinhood's co-founder, Biju Bhat, stepped down from his executive role at the Fintech giant last year to pursue a new endeavor, a space-based solar energy company called Etherflux. Our very own Brian Sozzy got a chance to sit down with him to discuss the company's mission as well as his role on Robinhood's board. Take a listen. The mission is to deliver energy to planet Earth. So, what does that mean? So we're taking this idea of space solar power, which an old NASA idea, Department of Energy from the '70s, of collecting solar power in space, beaming it down to the ground as an alternative energy source. Wild idea. Very wild. So if you pull off what you're trying to pull off, and I hope this doesn't sound really simple and borderline dumb, would we need solar panels anymore on people's roofs? Is that what you're trying to get rid of? I mean, I think it's a technology that kind of both is very complementary to that, and also is in many ways like a direct competitor to that. So when I think about, I think solar panels on roof, like those are useful in some capacity to people. Um, but I think the idea of having these really large solar farms on the ground that take up a tremendous amount of land that have adverse effects on the ecosystem underneath where the solar farms are, right? We can actually take that infrastructure and put it in space. This is kind of what our idea is. And instead project down a beam of power that uses way less real estate on the ground. So maybe this is a good time to just kind of broadly explain what the idea is. Yeah, far, yeah, please. Far out intended, far away. Far out actually. So you have solar panels in space, you have the sunlight from the sun that hits them in space. And the cool thing is, is that if you put it in the right orbit in space, you can have your satellite either continuously illuminated or illuminated a really large percentage of the time. And you get a constant amount of sunlight energy. So that sunlight energy is then converted to electricity on the satellite. And it's either stores the electricity in batteries or directly transmits that electrical power to the thing that transmits the power down to the ground, which is an infrared laser. So you have I'll put it in there far away. You're still on the Robinhood board. Now we, the past few years, I I've marveled at what Robinhood has done. Um, culturally, the company seems different. The top and bottom line results are different. They actually won our comeback of the year award last year. Um, has visions of potentially being a future JP Morgan, acquisitions. Like, what was a turning point inside of Robinhood that can help explain why the stock now near at a record high? Like, did something happen? I think we've been pretty focused on the mission from the beginning, right? And I think that's kind of been the sort of North Star, kind of coming back to the the parallel to Etherflux, right? The mission of democratizing finance for all. I think it's one of the things that motivates the company and motivates a lot of the decisions that we make there. And it's just been like really hard work and execution year and year out. I think, from my perspective, having, you know, co-founded the company with Vlad, I kind of see like all the little steps along the way and kind of the hard work it take took to get to every one of the different steps. And, yeah, I'm I'm proud of the execution. 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
Yahoo
14 hours ago
- Business
- Yahoo
Digital asset recap 2025: Coinbase, bitcoin, Circle, & more
Yahoo Finance Senior Business Reporter Ines Ferré joins Market Domination Overtime with Josh Lipton to recap the year digital assets have had so far and outline which companies are considering stablecoin adoption in the future. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. 2025 is shaping up to be a booming year for crypto, as regulatory tailwinds and forecasts of mass adoption send Bitcoin and stablecoin related companies higher. We're joined now by senior markets reporter, Ines Ferre, with an important recap on digital assets. Hi Elena, Ines. Hey Josh. Yeah, and if we just take a look at where Bitcoin is at year to date, it's up 13%. Since President Trump won the White House last year though, it is up roughly 50%. So you really see the boom that has happened in the Bitcoin space, uh, given President Trump's promises for, uh, crypto-friendly, uh, crypto-friendly framework. So you've had a lot of regulatory tailwinds, uh, this past half year, uh, you've had also the executive order that President Trump, uh, signed to start a strategic Bitcoin reserve, and you've had companies that have really benefited from this. I'm going to pull up a year to date chart so you can see the biggest beneficiaries. Robinhood up 122%, the trading platform. Also, you've got Coinbase that is up more than 40%. I do want to mention that even though today we saw Coinbase pulling, pulling back from its record close, this stock has seen a turnaround that is impressive. You've had this stock that was at its lows in 2022, it has emerged from those lows up more than 900% since then, and you've had a lot of bullish calls around Coinbase with one analyst earlier this week calling this company the Amazon of crypto financial services. Also want to mention that Coinbase is a minority, uh, stakeholder of Circle. This is the company that went public earlier in June, on June 5th. And Circle is up year to date, well since, since its IPO, almost 500%, 480%. This is the issuer of stable coins, and, uh, the stable coins are digital tokens that are backed by assets like the US dollar. And Wall Street is very bullish on this entire stable coin market because they are seeing a large, uh, addressable market. They are saying that this is going to revolutionize the way that payments are made, especially when it comes to cross-border payments. And we've seen a lot of deal making in this space as well. We've seen companies that have wanted to get involved in the stable coin space. And it's interesting because issuers of stable coin, you've got Circle, and then you've got Tether, which is privately owned that you, as far as Circle is concerned, it is a pure play when it comes to stable coins, and they're a big buyer of short-term debt, US Treasuries. So this is a very important link between, uh, between the government and also these, uh, issuers of stable coin because they, they also drive some of this demand for US, uh, treasury bills, short term. Ines, before I let you go, what, what can you tell us just quickly about the risks that we should think about associated with adopting stable coins? Yeah, I mean, you've had a couple of, uh, analysts that have talked about these risks that is that are, uh, you've got increasing competition, uh, on the heels of the Genius Act that was passed in the Senate. It's expected to be finalized by the end of this year, so it'll pass through the house and also will be signed into law. And so that's expected to go through, um, but then with that you're going to have increased competition. And then on top of that, the other risk is, is that if you have interest rates coming down, then that is going to impact the reserve income that, uh, a company like Circle makes because, uh, it invests those dollars into US treasuries for its stable coins. So, uh, that'll have some type of an impact. Some analysts that I've spoken to say that this means that they are going to have to get, gain more market share, grow faster, and perhaps go into other products as well. 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
