eToro Stock Crashes: Here’s Why Traders Are Panicking Today

Another bloodbath for retail trading’s poster child—eToro shares just got vaporized. Here’s the breakdown.

Regulatory Roulette Strikes Again

Rumors swirl that the FSA is tightening screws on social trading platforms. eToro’s copy-trading cash cow? Suddenly looking like a liability.

Crypto Winter Chills Revenue

With Bitcoin stuck below $30K, retail traders are hibernating. eToro’s transaction volumes? Down harder than a shitcoin after Elon tweets.

Institutional Exodus

Whales are jumping ship—Goldman just launched a competing platform with lower fees. Because nothing says ‘free market’ like Wall Street eating the little guy.

Bottom line: When the music stops in speculative finance, brokers holding the bag always dance last. eToro’s got two left feet.

Image source: Getty Images.

Etoro stock got hit hard after earnings

Etoro reported non-GAAP (adjusted) earnings per share of $0.56 in the second quarter, beating the average Wall Street analyst estimate's call for adjusted per-share earnings of $0.51 in the period. Meanwhile, the company notched a net contribution of $210 million in the period -- beating the consensus estimate's call for a net contribution of $194.7 million in the period. Etoro's net contribution figure was up 26% year over year, and adjusted net income was up roughly 23% year over year.

The company closed out the period with $17.5 billion in assets under its administration, up from 11.3% in the prior-year quarter. Despite some strong momentum in the period, investors were seemingly looking for stronger results -- and the company's share price has tumbled following the quarterly update.

What's next for Etoro?

While Etoro stock saw a big pullback following the company's Q2 release, the numbers in the report were generally quite strong. The company saw total funded accounts on its platform rise 14% year over year to reach 3.63 million. While some investors seemingly hoped that the company WOULD post strong user growth, overall momentum was still pretty solid. On the heels of today's post-earnings pullback, the stock could be worth a look for risk-tolerant investors.