eToro Shares Drop 17.9% Despite Q2 Beat as $231 Million TradeZero Deal Fuels Doubts
Updated
Updated · Yahoo Finance · Aug 14
eToro Shares Drop 17.9% Despite Q2 Beat as $231 Million TradeZero Deal Fuels Doubts
1 articles · Updated · Yahoo Finance · Aug 14
Summary
eToro stock fell 17.9% this week even after the trading platform beat Wall Street's second-quarter estimates on both revenue and earnings.
Q2 adjusted EPS came in at $0.68 on $229 million in revenue, topping forecasts of $0.61 and about $225.7 million, with revenue up 9% and adjusted income up 17% to $63 million.
Investor caution centered on eToro's planned $231 million acquisition of U.S. platform TradeZero, which several firms cited as a reason to cut price targets.
July operating data added to the pressure: funded accounts rose 18% to 4.32 million, but assets under administration fell 5% to $18.5 billion as crypto activity dropped and trading in other asset classes was flat.
With platform trading momentum slowing and the acquisition still debated, the shares may remain under near-term pressure despite the earnings beat.