TLDR

eToro (ETOR) stock jumped 29% in its Nasdaq debut, closing at $67 from an IPO price of $52
The company raised $310 million by selling shares above the expected range of $46-$50
eToro’s market cap grew to over $5.4 billion by the end of its first trading day
Crypto revenue tripled to $12 million in 2024, accounting for 25% of trading contribution
This marks eToro’s second attempt at going public after canceling SPAC plans in 2022

eToro Group Ltd, a platform for trading stocks and cryptocurrencies, saw its share price jump nearly 29% during its first day of trading on the Nasdaq. The company closed at $67 per share on May 14, up from its initial offering price of $52.

The successful debut came after eToro increased its IPO at the last minute. The company raised almost $310 million by selling nearly six million shares, with existing investors selling an additional six million shares.

eToro priced its shares above the expected range of $46 to $50. At the IPO price, the company was valued at approximately $4.2 billion. By the end of trading, its market cap had grown to over $5.4 billion.

(ETOR)

Market Conditions and Previous Attempts

The IPO represents a comeback for eToro, which had previously tried to go public in 2021 through a SPAC merger that would have valued it at over $10 billion. Those plans were shelved in 2022 as markets declined.

CEO Yoni Assia told CNBC that the company decided to go public now because they felt they were “seeing the light at the end of the tunnel of the correction in the markets.” The company had been watching for the CBOE Volatility Index to stabilize following concerns about tariffs.

eToro’s debut may signal a revival in the IPO market. Several other companies, including fintech firm Chime and digital physical therapy company Hinge Health, have recently filed for public offerings.

Strong Financial Performance

Founded in 2007 by brothers Yoni and Ronen Assia along with David Ring, eToro has shown impressive financial growth. Its net income increased dramatically from $15.3 million in 2023 to $192.4 million in 2024.

The company makes money through trading-related fees and non-trading activities such as withdrawals.

Cryptocurrency has become an increasingly important part of eToro’s business. Revenue from crypto assets more than tripled to upward of $12 million in 2024, with crypto accounting for 25% of its net trading contribution last year, up from 10% in 2023.

For the first quarter of 2025, eToro expects crypto assets to account for 37% of its commission from trading activities, down from 43% in the same period last year.

eToro Australia managing director Robert Francis noted that the company’s successful IPO is “a clear sign that retail investing is not a fad, but a long-term trend.”

Stock Performance and Ownership

Shares in eToro opened at $69.69 on Wednesday, 34% above the IPO price. During the trading day, the stock reached a high of $74.26 before settling at $67 at market close.

The IPO was led by Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup.

Some BlackRock-managed funds had shown interest in purchasing up to $100 million worth of shares at the IPO, according to a filing with the Securities and Exchange Commission.

Following the offering, Spark Capital remains the company’s largest outside investor with 14% control, followed by BRM Group at 8.7%. CEO Yoni Assia controls 9.3% of the company.

Meanwhile, rival platform Robinhood Markets Inc. (HOOD) saw its share price drop 1.9% to $61.39 on the same day, with losses extending to 1.63% after hours.

The successful debut comes after eToro had delayed its IPO following President Donald Trump’s April 2 “Liberation Day” tariff plans, which disrupted many planned public offerings.

eToro’s public debut marks a rebound for IPOs in the US market after many firms had put their plans on hold due to market uncertainty.

The post eToro (ETOR) Stock Price Analysis: Trading Platform Surges 29% in Nasdaq Debut appeared first on CoinCentral.

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Filed under: News - @ May 15, 2025 8:28 am