Shares of eToro (ETOR) stock rallied nearly 20% today after the online trading platform posted better-than-expected Q4 earnings on a more than 9% increase in funded accounts to 3.81 million.
ETOR earned $0.71 per share in the fourth quarter, handily beating the $0.69 consensus, helping the stock price soar past its 20-day moving average (MA).
Technical analysts often read this setup as indicating continued bullish momentum ahead. Versus its year-to-date high, eToro shares are still down some 10%.
Beyond headline figures, ETOR stock is worth owning because its management announced a $100 million increase to the share repurchase authorization on Tuesday.
The Israel-based company simultaneously committed to an accelerated stock buyback worth $50 million, suggesting the board sees eToro Group as undervalued at current levels.
At the time of writing, the stock trades at a forward price-to-earnings (P/E) ratio of less than 11x, which is lower than the firm’s historical multiple.
This means the market is still valuing eToro as a mature, cyclical brokerage — not the disruptive financial technology specialist it has evolved into in recent years.
While eToro’s overall revenue was down about 34% year-over-year in Q4, management attributed much of this to temporary crypto-market volatility.
In fact, executives dubbed it as “healthy rotation” in the release — not permanent demand destruction — as crypto-native clients switched to commodities like gold (GCJ26) and silver (SIH26) for portfolio hedging.
If anything, ETOR’s fourth-quarter print confirms its multi-asset approach is actually bearing fruit.
Plus, eToro is aggressively pivoting toward an AI-first ecosystem to future-proof its platform. The upcoming eToro App Store, powered by nearly 1,000 community-developed trading tools and public APIs, transforms the broker into a scalable financial hub.
As decentralizing innovation helps it capture tech-centric Gen Z and millennial cohorts better than its traditional peers, eToro shares could push sustainably higher over the next few years.
