Cathie Wood and Ark Invest on Tuesday purchased thousands of shares of IPO stock eToro Group as the trading platform notched a volatile session after reporting first-quarter earnings. Shares on Monday and early Tuesday jumped briefly to new highs and into a buy zone amid bullish analyst chatter.
Wood's ARK Fintech Innovation ETF added 49,922 shares of ETOR on Tuesday for an estimated $3.34 million, according to daily trade disclosures.
The IPO stock edged higher at the opening bell in Tuesday stock market action before sinking nearly 12% to 66.96. EToro stock soared nearly 11% to 75.97 on Monday, carrying it above a traditional buy point, according to MarketSurge chart analysis.
Shares slid about 6% to 62.96 on Wednesday after bouncing between narrow gains and losses before the stock market open.
IPO Stock Earnings
The trading and investing platform announced early Tuesday Q1 EPS of 69 cents, down around 9% compared to 76 cents in Q1 2024, but above a limited analyst consensus of 59 to 61 cents. Total revenue and income increased 11% to $3.75 billion, according to the company.
"I am incredibly proud of the eToro team for producing strong first quarter results and the successful completion of our initial public listing," Chief Executive Yoni Assia said in the earnings release.
"We believe that AI is turbocharging the reshaping of the investing landscape and we're excited to be at the forefront of this transformation. As a global community that empowers retail investors, we are well positioned to drive sustainable growth and profitability over time, creating further value for our shareholders," Assia added.
Looking to the second quarter, eToro's only comment Tuesday was that the "performance of the business" by the end of May "reflects continued progress and interest in trading and investing from retail investors in response to market events."
EToro added that it ended May with 3.61 million funded accounts and $16.9 billion in assets under administration. The trading platform also reported that Q1 funded accounts increased 14% to 3.58 million compared to 3.13 million in Q1 2024. This was driven primarily by ongoing user acquisition and retention efforts, as well as the acquisition of Australian investing app Spaceship in 2024, according to the company.
Meanwhile, assets under administration grew 21% $14.8 billion in Q1 2025.
Cathie Wood Purchase Follows Analysts' Coverage
Cathie Wood's purchase of the IPO stock comes just one day after 15 analysts initiated coverage on the trading platform.
Of those 15 analysts, 10 gave buy or outperform recommendations to clients. Five others gave neutral ratings. Price targets for the stock ranged from 70 (from Deutsche Bank, USB and Susquehanna) to 85 (from JPM Securities), according to reports. The stock traded around 72 Monday morning.
Among those who issued buy ratings, Canaccord analyst Joseph Vafi views eToro as a next-generation digital disruptor, bringing to market a value proposition that is resonating with younger and active traders.
Other analysts also gave positive comments on the social trading tools.
Goldman Sachs analyst James Yaro sees eToro Group as an attractive story in growing market share amid a fragmented European retail brokerage market. EToro is headquartered in Israel and most of its clients are outside the U.S., where the company plans to expand its presence.
BofA initiated coverage with a neutral rating, saying shares are at a full valuation after recent stock performance, TheFly.com reported. BofA sees upside potential from the Trump administration's crypto initiatives. But analysts cited macroeconomic and regulatory concerns, and want more details on organic growth and other metrics.
Deutsche Bank gave a neutral rating, saying the brokerage has substantial long-term growth opportunities via a "highly differentiated and appealing" social trading and investing platform. However, the analyst sees some risks from rising competition and any changes in the pace of adoption of its social investing platform.
EToro Breaks Out
The IPO stock on Monday topped the 74.28 buy point of an IPO base. The buy range ran to 77.99. The trading platform went public May 14. It enters Wednesday's stock market up 29% from its initial offering price of 52.
ETOR stock has clearly been volatile. It reversed sharply lower Thursday, then rebounded 9.8% on Friday. EToro is also actionable from last Wednesday's high of 66.55 with last Thursday's high of 71.48 also serving as an early entry.
EToro has a Composite Rating of 69. The Cathie Wood-backed stock also has a 44 Relative Strength Rating and a 43 EPS Rating.
The IPO stock has not been active in stock market trade long enough to have a 21-day average true range, which is a measure of volatility and trading risk.
Please follow Kit Norton on X @KitNorton for more coverage.
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