eToro Trades at a Record Price: What Is Behind the Recent 10% Rally?

eToro (Nasdaq: ETOR) shares jumped 9.8 per cent in the last trading session on Friday to close at an all-time high of $68.70 per share. The bullish sentiment continued after markets closed, as the stock rose another 1.44 per cent in after-market hours, reaching $69.69.

The Bumper eToro IPO

The Israeli company made its public market debut last month through a much-anticipated initial public offering (IPO). The demand for eToro shares was so high that the company increased its IPO price from the originally set range of $46 to $50 per share to $52.

Read more on FinanceMagnates.com's coverage on eToro here.

eToro’s stock market listing happened at a premium. Although the shares fell from the first-day demand surge, Friday’s rally indicated there could be further upside for the stock.

Interestingly, Friday's rally was not triggered by any company-specific news; rather, it followed the overall bullish market sentiment. Robinhood (Nasdaq: HOOD), seen as eToro’s direct competitor in the American market, is trading at an all-time high after gaining 13.35 per cent over the past five sessions. However, HOOD shares fell in after-market trading following the latest market close.

eToro’s share price has risen more than 32 per cent from the IPO level, giving the company a market capitalisation of $5.75 billion. Although no Wall Street analysts are covering the stock at present, they are expected to initiate coverage soon due to the company’s strong presence in the retail trading market.

You may also like: eToro’s $4B IPO - Too Pricey for Europe, a Bargain in the US?

Incoming Earnings Event

The Nasdaq-listed firm is expected to release its financials for the first three months of 2025 shortly. In its updated IPO prospectus, the broker stated it expects to close the quarter with a net income between $56 million and $60 million, down from $64 million in the same quarter last year. The expected decrease is attributed to increased spending on marketing and growth.

eToro ended 2024 with total commission income of $931 million, a year-on-year rise of 45.6 per cent. Crypto contributed significantly to income, accounting for 38 per cent of the total. Commodities made up 20 per cent, while currencies contributed just 4 per cent.

Although the broker anticipates a slowdown in Q1, the current quarter may see another strong performance due to the impact of tariff-induced volatility in April on trading platforms. While eToro has not shared any data on its April performance, IG Group, another retail trading platform listed in London, stated that April was an exceptional month, with “higher levels of client trading activity than expected in typical market conditions.”

Read more: Tariff Volatility Pushes FX Trading - Firms See “Strongest Days”

It remains unclear whether the surge in demand caused by tariffs has already been reflected in eToro’s share price, but this will become evident once the Israeli company publishes its next financial results.