IPO stock eToro Group reported first-quarter earnings early Tuesday and sank in stock market action after trading in a buy zone and jumping to new highs on Monday amid bullish analyst chatter.
The trading and investing platform announced 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.
Hot IPO eToro Charges To New Highs; Most Analysts Bullish
EToro stock edged higher at the opening bell before sinking nearly 12% to 66.96 in Tuesday's stock market action. The IPO stock soared nearly 11% to 75.97 on Monday and moved above a traditional buy point, according to MarketSurge chart analysis.
Analysts Bullish On IPO Stock's Outlook
The IPO stock's first-quarter earnings report 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 surged 10.6% to 75.97 on Monday, topping the 74.28 buy point of an IPO base. The buy range goes as high as 77.99. The trading platform went public May 14 at 52 a share and entered Tuesday's stock market up 46% since then.
The IPO stock, however, has been volatile. It reversed sharply lower Thursday, then rebounded 9.8% on Friday. EToro is also actionable from Wednesday's high of 66.55 with Thursday's high of 71.48 also serving as an early entry.
EToro has a Composite Rating of 94. The IPO stock also has an 85 Relative Strength Rating and an 82 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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