eToro
shares (NASDAQ: ETOR) climbed
5.25% yesterday (Tuesday), closing at $46.73 in the strongest single-day
performance since July 23. The rally marked one of the best trading sessions
for the social trading platform since its Wall Street debut in May.
The jump
came after eToro released business metrics for July and August that
showed significant growth across key performance indicators. Assets
under administration reached $19.7 billion in August, representing a 77%
year-over-year increase from the same period in 2024.
eToro’s
stock had been testing historical lows around $43.50 throughout August, and
Tuesday’s session briefly revisited those levels before the afternoon surge.
Despite the rally, shares remain down more than 30% since the company’s
IPO and 42% below their June 10 peak of nearly $80.
eToro Shares Rockets 5% on
Explosive Crypto Trading Growth
The
published metrics revealed particularly strong performance in cryptocurrency
trading. The number of crypto trades jumped 49% year-over-year to
10.7 million during the two-month period, while the average amount invested per
crypto trade nearly doubled with a 96% increase to $345.
Traditional
capital markets activity showed more modest gains. The total number of equity
and commodity trades rose 3% to 87.7 million, with the average trade size
increasing 4% to $273.
Interest-earning
assets grew 46% to $7.5 billion, while total money transfers surged 50% to
$1.8 billion compared to the same period last year. Funded accounts reached
3.69 million in August, up 15% from 2024 levels.
eToro Key Performance
Metrics Table
eToro Touts Results
Following Weaker Q2 Report
The strong
operational metrics contrast with eToro’s
mixed second-quarter earnings results published in August. The company
reported net contribution of $210 million, a 26% year-over-year increase,
but net income remained flat at around $30 million.
The fintech
platform has been working to diversify beyond its core trading business. Recent
initiatives include launching
French savings products, expanding cryptocurrency offerings to over 100
digital assets in the U.S., and introducing AI-powered investment strategies
called Alpha Portfolios.
eToro
completed its transition
to public markets this year after establishing its Asian headquarters in
Singapore and expanding product offerings across multiple regions. The company
ended the second quarter with $1.2 billion in cash and short-term investments.
Tuesday’s
trading volume and price action suggest investors viewed the July-August
metrics as evidence that user engagement and platform activity continue growing
despite broader market volatility affecting fintech stocks.
What Technical Analysis
Says About eToro Shares
Although
the rebound is evident, eToro shares continue to consolidate at historic lows. According
to my technical analysis, only a return above the $48 level would relieve some
selling pressure and open the path back to July’s highs just above $53.
I would
expect full pressure relief only above $58, where the first significant
technical support ran along the May and June lows. This would mean, however,
that eToro shares would need to rebound 24% from current levels.
How did
eToro perform on Tuesday compared to its competitors? Warsaw-listed XTB fell
1.8% that day, while London-based Plus500 and CMC Markets declined 1.34% and
1.36%, respectively.
This article was written by Damian Chmiel at www.financemagnates.com.
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