Why Etoro Stock Is Plummeting This Week
Key Points
Etoro beat sales and earnings expectations for the second quarter.
The company announced that it will be acquiring TradeZero in a $231 million deal.
The company's performance update for July left the market cold, and some investors aren't excited about the TradeZero acquisition.
- 10 stocks we like better than eToro Group ›
Etoro (NASDAQ: ETOR) stock is falling this week despite a better-than-expected second-quarter report. The trading platform specialist's share price was down 17.9% in the week's trading heading into Friday's market open.
Etoro published its Q2 results on Aug. 11 and reported sales and earnings for the period that topped Wall Street's forecasts. On the other hand, investors are taking a cautious approach to the company's near-term outlook and to the announcement of a significant acquisition.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Etoro sinks despite Q2 beats
Etoro recorded non-GAAP (adjusted) earnings of $0.68 per share on sales of $229 million in the second quarter. The average analyst estimate called for adjusted earnings per share of $0.61 on revenue of roughly $225.7 million. Revenue in the period was up 9% year over year, and adjusted income increased roughly 17% to $63 million.
Investors aren't sure about Etoro's new acquisition and outlook
With its Q2 report, Etoro announced that it will be buying U.S. trading platform TradeZero in a $231 million deal. Investors and analysts appear to be split on the value of the move, and multiple investment firms noted some uncertainty surrounding the deal as a factor in lowering their price targets on the stock.
Additionally, some analysts were concerned about the key performance metrics that the company shared for July. While funded accounts rose 18% year over year in the month to reach 4.32 million, assets under administration declined 5% year over year to $18.5 billion.
Cryptocurrency activity saw substantial drawdowns, and trading activity for capital markets and equities, commodities, and currencies was flat. With trading momentum on the platform decelerating and some questions about the TradeZero acquisition, Etoro could remain under pressure in the near term.
Should you buy stock in eToro Group right now?
Before you buy stock in eToro Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and eToro Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of August 14, 2026.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
