eToro – the Israeli financial technology company remains in focus after a blockbuster debut that saw its share price rally nearly 40% from the IPO price of $52 to a high of just over $72 at one point.
eToro raised a total of $620 million in the initial public offering – and after the said rally, the digital trading platform is valued at more than $5.0 billion.
On Thursday, the post-debut volatility seems to be easing a little, with the eToro shares going for about $65 at writing – a pullback that may spell opportunity for the long-term investors.
eToro is a fast-growing fintech company
eToro stock rallied hard on its Nasdaq debut this week, but there’s reason to believe that it may still push further to the upside in the months ahead.
For starters, the financial technology company is growing at a fast clip.
In 2024, eToro saw its net income increase by an exceptional 13-fold on a year-over-year basis to about $192 million.
eToro attributed much of the strength in its financial performance last year to increased trading in cryptocurrencies ahead of Trump’s return to the White House.
Note that experts are calling for Bitcoin to roughly double from the current levels of over $100,000 in 2025.
So, it’s reasonable to believe that crypto activity will remain strong in the months ahead, which may continue to reflect in ETOR’s financials.
eToro stock is cheaper compared to its rival
eToro stock is attractive at current levels also because it continues to trade at a discount compared to its peer, Robinhood.
Based on 2024 figures and current shares outstanding, ETOR is trading at a price-to-earnings ratio just under 29 and a price-to-sales multiple of 5.92.
In comparison, Robinhood (HOOD) commands significantly richer valuations, with a P/E ratio exceeding 44 and a P/S multiple slightly above 17, according to Barchart data.
The difference between multiples tied to these industry peers suggests eToro shares may unlock significant further upside through the remainder of 2025.
Why else are eToro shares worth buying in 2025
eToro is a digital-first trading platform that gives it an edge over conventional brokerage firms like Charles Schwab and Fidelity.
Plus, the Israeli company offers standout features, including “CopyTrader” that lets users mimic the trades of experienced investors, making it particularly attractive to novice traders.
These innovative features help eToro continue to expand its user base. At the end of 2024, it had more than 3.5 million funded accounts across 75 countries worldwide.
Investors should note that eToro’s management remains committed to expanding into new markets, which could drive revenue growth and lead to a higher stock price moving forward.
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