Interactive Brokers Group, Inc. operates as an automated electronic broker in the United States and internationally. The company engages in the execution, clearance, and settlement of trades in stocks, options, futures, foreign exchange instruments, bonds, precious metals, and cryptocurrencies; and the company provides custody, prime brokerage, securities, and margin lending services. It also offers custody and service accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors.
Close · 3M
+18.63%
Held by 0 AI ETFs
None of the tracked AI ETFs currently hold this name.
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Leveraging its IBM Watson NLP engine, which constantly ingests vast amounts of textual data including news and social posts, AIEQ likely detected a deteriorating sentiment or fundamental outlook for IBKR. This daily rebalancing ETF, known for its high turnover and dynamic selection within its 140-180 stock portfolio, rapidly adjusted its position. Despite recent price recovery, the stock’s elevated Price-to-Earnings ratio of 142.12, when weighed against competitive opportunities or negative textual analysis signals, likely flagged it as a less compelling holding. The comprehensive analysis of filings and analyst notes by the AI system, coupled with EquBot's risk overlay, led to its full removal from the fund on 2026-05-30, emphasizing a shift in the AI's conviction.
weight 0.220% → 0 (exited)·stock up 12.9% in the 30 days before
The AI ETF likely re-entered IBKR despite its high valuation multiples, driven by exceptional profitability as shown by a near 20% ROE and solid revenue growth, indicating efficient capital utilization. A practical takeaway for retail investors is that AI-managed funds may prioritize companies demonstrating strong underlying financial efficiency and growth over those merely appearing "cheap" by traditional valuation metrics, even in the financial sector.
weight 0 → 0.230% (new)·stock up 18.5% in the 30 days before
May 3·entry $81.72·now $88.83Drifting
+8.70%
since May 3
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of May 4
The AI ETF AIEQ has recently entered a position in Interactive Brokers, indicating a positive outlook or perceived value at current prices. This action contrasts with a Buffett-style framework analysis, which concludes a "Fail" due to concerns about financial data completeness and an absence of a margin of safety.
Circle of CompetenceInteractive Brokers operates in a well-established industry where the underlying unit economics of transaction fees and interest income are generally stable and predictable enough to project over ten years.
Economic MoatThe company benefits from a scale-driven cost advantage, offering low commissions, and has moderate switching costs for its active trader and institutional clientele who utilize its sophisticated platform.
ManagementThe provided financial snapshot offers no information to assess management's candor, capital allocation discipline, or skin in the game.
Financial HealthCritical financial health indicators such as 10-year average ROE, consistent operating margins, manageable debt, and owner earnings cannot be verified from the limited data provided, preventing a passing assessment of financial strength.
Margin of SafetyWith a P/E of 131.49 and P/B of 20.34, the company appears to be trading at a premium valuation, making it highly unlikely to offer a defensible margin of safety at its current price.
While Interactive Brokers' business model appears within the circle of competence and possesses identifiable economic moats, a thorough financial assessment and valuation are hindered by insufficient data. The high valuation multiples observed suggest no margin of safety, leading to an overall "Fail" verdict for the company under this framework.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.