Key Stats for eToro Stock
- Price change for eToro stock: -14%
- $ETOR Stock Price as of Aug. 11: $29
- 52-Week High: $52
- $ETOR Stock Price Target: $55
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What Happened?
eToro (ETOR) stock crashed further after a rough stretch, falling from recent lows as shares remain down nearly 21% over the past five days. The crash comes despite Citizens reiterating its Market Outperform rating on the stock, keeping a $90 price target firmly in place.
eToro’s Q2 numbers actually beat expectations across the board. Net contribution came in at $229 million, up 9% year over year and about 2% above what analysts expected. Adjusted EBITDA rose 9% to $78 million, beating consensus by 7%.
Earnings per share told a similar story. eToro posted adjusted EPS of $0.58, a bit lower than $0.61 analysts were looking for. Expenses stayed in line with expectations, even though the company spent more on marketing during the quarter.
User growth was another bright spot. Funded accounts jumped 18% year over year and 6% from the prior quarter, reaching 4.28 million. That’s about 2% above what Wall Street expected. Roughly 110,000 of the new accounts came from eToro’s recent acquisitions of Zengo and Bit2C.
Here’s the puzzling part: eToro stock dropped sharply even after beating on nearly every metric. That’s not unusual when a stock has run up heading into earnings, and investors were likely digesting other factors, including softer crypto trading and a slowdown in trading activity heading into July.
CEO Yoni Assia acknowledged the shift on the earnings call, noting that trading activity moved away from crypto and commodities toward equities during the quarter. Net trading contribution from capital markets, which includes equities, commodities, and currencies, actually grew 25% year over year to $142 million.
Crypto contribution, meanwhile, came in at just $11 million, reflecting the ongoing rotation in what users are trading.
eToro also announced plans to acquire TradeZero, a U.S.-based trading platform, for up to $231 million in cash and stock.
The deal is expected to close in the first half of 2027 and would give eToro stronger footing in the U.S. market, including access to options, futures, and short-selling capabilities that eToro doesn’t currently offer domestically.
TradeZero generated about $80 million in revenue over the past year with gross margins above 80%.
Management expects the deal to add to earnings in its first full year after closing, without requiring a significant jump in expenses.
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What the Market Is Telling Us About eToro Stock
Citizens’ decision to stick with its $90 price target, well above where eToro stock currently trades near $29.33, suggests the firm sees the recent pullback as disconnected from the company’s underlying performance.
The stock’s P/E ratio of 8.91 also looks low relative to a business still growing revenue, users, and profitability across every key metric.
For now, eToro stock appears to be still losing its footing after a volatile week.
Whether that recovery comes may depend on how investors react to the upcoming further updates on the TradeZero acquisition, progress in future quarters, among other things.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
