eToro Shares Drop Widens to 40% Since May IPO

Thursday, 02/10/2025 | 07:05 GMT by Damian Chmiel

eToro shares slid 5.35% to $39.06 on Wednesday, a new record low and over 40% below May’s IPO debut, while the Nasdaq rose to fresh highs.

Analysts cite softer revenue drivers even as the platform adds new features and interest income.

Shares of eToro (NASDAQ: ETOR) closed at new all-time lows yesterday (Wednesday), slipping 5.35% to end the day at $39.06. The stock has now dropped over 40% since May’s debut and trades visibly below its initial public offering (IPO) price of $52.

The declines most likely came in response to an updated recommendation from Mizuho analysts, who lowered the price target.

eToro Shares Slides to Record Lows Despite Tech Rally

The decline came on a day when the Nasdaq Composite, weighted heavily toward technology companies, rose 0.49% to finish above 24,800 for the first time ever. That divergence highlighted the recent pressure on eToro’s shares, even as broader sector momentum remains strong.

Mizuho lowered its price target for eToro to $65 from $80, pointing to weaker trading activity per account and a lower take rate. Still, the bank maintained an “Outperform” rating, noting longer-term opportunities around tokenized stocks,

Other brokerages have trimmed estimates but vary in their stance on the stock. KBW cut its target to $60, Jefferies moved to $63, and UBS reiterated a Neutral rating with a $58 target. At the more bullish end, Citizens JMP reaffirmed its “Outperform” rating with an $85 target.

eToro shares hit new all-time lows. Source: Investing.com

Stock Extends Slide Since IPO

eToro debuted on Nasdaq in May at $52 per share before opening its first day of trading at $69.69. After initially gaining attention with investor excitement around trading platforms, the stock has steadily trended lower. At Wednesday’s close, it is now 44% off its first-day opening level.

In the second quarter alone, the company’s shares fell 38%. By comparison, other publicly listed retail trading firms performed much better. Nasdaq-listed Robinhood climbed 53% to a record high above $143, while Interactive Brokers gained 24%, also testing new records above $70.

On the London market, CMC Markets dropped 5% to just under 240 pence, while Plus500 fell by a similar margin, retreating from an all-time high of 3,492 pence.

In Warsaw, XTB posted a sharper 12% decline, though the stock still trades near record highs, unlike eToro, which remains closer to its lows.

eToro’s chart performance could improve with the upcoming Q3 report, though investors will have to wait a bit longer, as it is scheduled for release in early December.