Shares of new issue eToro Group rebounded Friday as the trading platform works on its first buy point.
EToro stock is forming an IPO base with a 74.28 buy point, according to IBD MarketSurge pattern recognition. Like many new issues, eToro stock has been volatile. It reversed 4% lower Thursday, but rebounded 6.5% Friday morning.
Israel-based eToro offers a trading platform for stocks, ETFs, options, cryptocurrencies and other assets. Some of the platform's most successful traders can become Popular Investors who engage with eToro's investor community and can earn money when other clients copy their portfolios.
In its prospectus, eToro calls itself a pioneer in crypto trading. It says it employs artificial intelligence to give users personalized insights, identify trends and optimize investing strategies.
IPO Stock Is Profitable
The trading platform comes to Wall Street with strong credentials. As of Dec. 31, the company had about 3.5 million funded accounts in 75 countries. Last year, eToro had net income of $192 million, up 1,161% from 2023. Commissions rose 46% to $931 million in 2024.
EToro went public May 14 at 52 a share in an initial public offering headed by Goldman Sachs, Jefferies, UBS and Citigroup. It climbed as high as 74.28 in its first day of trading and has been consolidating since then.
The IPO went above the expected range and raised $620 million at a $4.9 billion market cap, according to Renaissance Capital.
Could eToro Stock Follow Another IPO?
EToro's launch on the Nasdaq follows a successful IPO for CoreWeave, which operates data centers using Nvidia chips. Nvidia owns a 7% stake in the company. CoreWeave this year signed a five-year deal with OpenAI, the creator of ChatGPT.
The stock went public at 40 a share on March 28 and has rallied as high as 166.63. Shares slid more than 17% Thursday in active trading but remained above a 64.62 buy point. Friday morning, CoreWeave traded 8% higher near 146.
CoreWeave surged more than 25% Tuesday after it signed a long-term data center leasing deal with data center operator Applied Digital. Microsoft is CoreWeave's biggest customer.
When trading IPOs, investors are smart to wait for a proper entry — principally a breakout from an IPO base — rather than buying without a chart pattern. Sell signals can happen quickly with new issues. Remember to sell if a stock falls more than 7% below your purchase price.
