Our trade of the week is going long Interactive Brokers (NASDAQ:IBKR) at $63.50 ahead of reported earnings on Tuesday.

Analysts expect the company to announce earnings of $0.84 per share for the quarter being reported, but we think that there is upside potential to beat this. The US-based trading platform should have seen strong revenues thanks to a volatile period in the markets. Q1 included the start of the conflict in Ukraine, as well as soaring energy prices. The NASDAQ also experienced one of the worst January’s on record, something that will have been well traded both long and short by investors on the platform.

With interest rates also rising, the net interest margin that IBKR will have made on deposits should also have increased during this period in question.

We also think that the quarterly report could indicate a better than expected outlook for the rest of the year, given the likelihood for a continuation of volatility into the summer.

Please read our full disclaimers regarding the information published. The above is intended for informative purposes only and should not be taken as investment advice. Trading on leverage can result in losses larger than your initial deposit.

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