eToro Shares Drop 8% Despite Strong Q2 Growth Driven by AI and Crypto Expansion

eToro Group Ltd. reported a 26% year-over-year revenue increase to $210 million in Q2 2025, fueled by AI-powered tools, 24/5 trading, and tokenized assets. Adjusted EBITDA ROSE 31% to $72 million as the platform expanded to 130+ cryptocurrencies and launched tokenized U.S. equities.

Despite these fundamentals, ETOR shares plunged 8% intraday from $59 to $50.74, reflecting market skepticism toward crypto-adjacent stocks. The selloff occurred even as eToro strengthened its position across trading, wealth management, and neo-banking verticals.

Tokenization efforts and extended trading hours for U.S. equities failed to impress traders, underscoring the divergence between crypto-native growth metrics and traditional market sentiment. The platform's global expansion and 54% adjusted net income growth were similarly discounted.