EToro Stock Rallies Over 40% On Nasdaq Debut

Shares of EToro (ETOR) surged in their Nasdaq debut on Wednesday after the trading platform and a group of investors raised nearly $620 million in an upsized initial public offering.

The stock opened at $69.69, 34% above its IPO price of $52, giving the Israel-based brokerage a market capitalization of roughly $5.6 billion. 

By midday, EToro’s stock had climbed as much as 40%, implying a market value closer to $6 billion. On a fully diluted basis, which includes employee stock options and restricted share units, eToro’s valuation approaches $7 billion.

The company was valued at roughly $4.2 billion at the IPO price.

The offering comprised 11.92 million shares, up from an originally planned 10 million, with approximately half sold by existing shareholders. According to data cited by TheFly, the deal attracted more than 20 times the number of available shares.

EToro’s debut adds momentum to a recovery in the U.S. IPO market, which had slowed in recent weeks amid increased equity market volatility following President Donald Trump’s early April tariff announcements. 

The company was among several that paused IPO plans due to shifting investor sentiment and geopolitical uncertainty.

Founded in 2007, EToro is a trading and investment platform that allows users to buy and sell assets, including stocks and cryptocurrencies. The platform is known for its “social trading” feature, which allows users to follow and replicate the portfolios of top-performing investors.

This is EToro’s second attempt to go public. A previous plan to merge with a blank-check company collapsed after market conditions deteriorated despite an initial valuation of $10.4 billion.

According to filings, the company’s net income increased almost thirteenfold to $192.4 million in 2024 from $15.3 million in 2023. EToro has also steadily been building its cryptocurrency business, with revenue from crypto assets more than tripling to upward of $12 million in 2024. 

Meanwhile, competitor Robinhood’s (HOOD) stock slid more than 2% in afternoon trade after rallying nearly 9% in the previous session. The dip occurred despite a price target hike from Deutsche Bank to $64, up from $54, with a ‘Buy’ rating on the shares. 

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