After years, eToro, one of the most well-known investment platforms, has officially joined the ranks of publicly traded companies. eToro has built a name for itself over the years as a pioneer in the field of social trading, reaching millions of users around the world. Its listing marks a significant milestone not only for the company, but also for the wider fintech sector. The first day of trading showed strong demand for the stock and a positive market reaction. The listing also opens up new opportunities for further growth.
The popular trading platform eToro was founded almost 20 years ago and offers its clients the opportunity to trade in a variety of assets. One of the company's principles is that knowledge should not be hoarded but shared, which is why it is known as a pioneer in social investing. Investors can copy the trades of other, more experienced investors through CopyTrader, including a social feed and community approach.
A successful first day
eToro debuted on the Nasdaq exchange on May 14, 2025 under the ticker ETOR, when its stock price spiked to nearly $70 in early trading, which it surpassed within a day. Towards the end of trading, the stock retreated from that level and closed at $67. Nevertheless, it was still a sharp increase - more than 28%, compared to the original value at which the company offered its shares ($52)*
Price development of eToro’s shares since IPO. (Source: Investing.com)*
Higher than expected values
The aforementioned price of $52 was adjusted from the original range of $46 to $50 just hours before the IPO. The company managed to sell almost 12 million shares of common stock in its initial public offering, bringing its market value to $4.2 billion. The total number of shares sold surpassed the levels that eToro had offered prior to the IPO, totalling 10 million units. Underwriters included banks such as Goldman Sachs, Swiss UBS, Jefferies, and Citigroup with 1.79 million shares up for grabs.
Looking at the company's other financial metrics, it posted a net profit of $192.4 million last year on revenue of $12.64 billion, a robust year-over-year increase from 2023, when net profit was just over $15 million and revenue was $3.43 billion.
It was worth the wait
The company, one of whose competitors is Robinhood, tried to launch an IPO 4 years ago, when its plans were thwarted by a market correction. At the time, eToro was supposed to enter the market as part of a merger with a so-called joint special purpose acquisition company (SPAC). The decision to try its luck again was weighed on by the CBOE's volatility index, which has stabilized in the wake of the tariffs, with CEO, Yoni Assia adding to CNBC that it was the "light at the end of the tunnel" of the market correction. According to Assia, retail investors in particular contributed largely to the softening of the correction, but he doesn't know if eToro's own clients also contributed to the company's performance.
Market recovery
The lull that hit the US IPO market slowly began to fade last year, but was hit in the short term by uncertainty around Donald Trump's trade tariffs, with further recovery evidenced by the entries of other companies. One of these, for example, was cloud AI company, CoreWeave, in what was thought to be the largest IPO since 2021 in the US. During the first day of trading, CoreWeave's value increased to USD 25 billion. In the same period, companies such as Klarna and StubHub issued their shares. Hinge Health, a digital physiotherapy company, and another fintech firm, Chime, are also expected to float in the coming weeks.
Conclusion
The listing of eToro on the stock exchange confirmed investors' confidence in its business model and growth potential. A strong first day, exceeded expectations and positive financials suggest that the company is off to a good start. It remains to be seen whether it can sustain this success in the coming quarters.
* Past performance is no guarantee of future results.
Sources:
https://help.etoro.com/s/article/what-is-etoro?language=en_GB
https://www.cnbc.com/2025/05/14/stock-trading-app-etoro-ipos-debuts-on-nasdaq.html
https://www.cnbc.com/2025/05/13/etoro-prices-ipo-52-per-share.html
