eToro stock surges on strong Q3 results and $150M buyback

Shares of the global social trading and investment platform eToro surged significantly on Monday, November 10. This increase follows the announcement that the company’s assets under management have escalated by 76%, reaching a total of $20.8 billion for the third quarter compared to the same period last year.

Apart from this report, eToro made public a 28% surge in net contribution, reaching $215 million. Reports indicated that this figure is up from $167 million recorded the previous year. Additionally, the eToro board approved a share repurchase plan of up to $150 million, including an initial accelerated tranche of approximately $50 million.

eToro shifts its focus towards developing new products and innovations

eToro’s net income following Generally Accepted Accounting Principles (GAAP), a set of standardized regulations and guidelines for financial accounting and reporting used in the United States, soared by 48% to reach $57 million. 

On the other hand, the number of funded accounts increased by 16%, attaining a total of 3.73 million. This growth was partly attributed to the integration of  Australia’s Spaceship app, a micro-investing and wealth management application. 

Following these moves, reports dated Monday, November 10, revealed that eToro’s stock climbed about 7% during intraday trading on Nasdaq. This was after the company’s users made 5 million cryptocurrency trades last month. The cryptocurrency trades marked an increase from the same time last year.

In the meantime, the average investment for each trade skyrocketed by  52% to reach $320 while interest-earning assets grew to $8.7 billion, demonstrating a 55% year-over-year increase. 

In light of this significant accomplishment, eToro sought to generate further excitement in the crypto ecosystem with news of the launch of its crypto wallet.  

According to the company, the introduction is expected within the next few quarters. According to reliable sources, this crypto wallet will provide users with access to tokenization, lending products, and prediction markets.

Yoni Assia, the CEO of eToro, commented on the topic of discussion. Assia outlined the company’s current focus, stating that its goal is to develop new products and embrace innovations. Concerning innovation, the CEO stated that eToro will particularly focus on sectors such as AI and copy trading. 

To demonstrate the company’s commitment to solidifying its position as a leader in finance, eToro recently launched Tori, an AI-driven analyst that offers customized investment insight.

Trump’s pro-crypto stance encourages eToro to explore the crypto ecosystem

In September 2024, eToro ceased trading most cryptocurrencies in the US following a settlement with the Securities and Exchange Commission. 

The company also stated that it had agreed to pay $1.5 million to resolve allegations that it operated an unregistered brokerage and clearing agency through its cryptocurrency platform.

However, following the growing adoption of cryptocurrency among nations, analysts realized that the perspective towards crypto has gradually changed. Their finding was released after it was discovered that the US government’s view on digital assets had evolved since eToro’s incident.

Sources acknowledged that President Donald Trump’s pro-crypto stance is behind this positive change in perspective towards the crypto world. Trump had pledged to make his country a world leader in developing crypto and AI innovation. In September, SEC Chair Paul Atkins said, “most crypto tokens are not securities.”

These efforts created a conducive environment for crypto-related activities. As a result, eToro outlined plans to tokenize 100 top US-listed stocks and exchange-traded funds (ETFs) on ERC-20 tokens, which will be available for 24/7 trading on the Ethereum blockchain starting in July.

The news came after Robinhood launched a layer-2 network on Arbitrum to tokenize US stocks, allowing European investors to trade over 200 tokenized equities and ETFs, available 24/5.

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