Why eToro Group Stock Took a Nosedive on Wednesday – And What It Means for Crypto Traders

eToro's stock just got rug-pulled by Wall Street. Again.

Here's the breakdown—no fluff, just the raw moves behind Wednesday's plunge.

The Trigger: A Classic Case of 'Buy the Rumor, Sell the News'

Traders dumped shares after eToro's Q2 earnings failed to moon like retail investors hoped. No surprises—just another fintech firm learning the hard way that stonks don't always go up.

Crypto Connection: Platform Woes Mirror Market Jitters

While Bitcoin flirted with $40K, eToro's stock chart looked like a shitcoin post-halving. Ironic, given their whole 'social trading' shtick.

The Silver Lining? Dip Buyers Are Circling

Some degenerate traders are already eyeing this as a buying opportunity. Because nothing screams 'sound investment' like catching a falling knife.

Final thought: Maybe stick to trading actual crypto—at least those charts make no sense intentionally.

Time to get out the scissors

Those moves occurred a day after eToro published its second quarter earnings report. The company didn't perform badly at all during the period, in fact it notched a double beat on both the top and bottom lines. However, it's a fast-growing company in a lucrative field, and it seems investors were hungry for even better numbers.

Image source: Getty Images.

Several analysts tracking eToro stock also hoped for more, expressing some degree of disappointment by shaving their price targets. By my count five of them made such cuts on Hump Day.

Among the choppers was Keefe, Bruyette & Woods' Kyle Vogt, who set a new fair value assessment of $60 per share for the fintech, from the preceding $65. He's lukewarm on eToro's prospects, as he continues to rate it as a market perform (hold). Maintaining a similar recommendation was's Christopher Allen, accompanied by a $72 per share to $62 price target cut.

Staying cautiously bullish on eToro

Meanwhile, three of the five price target reducers kept their buy recommendations on eToro intact. This clutch included Needham's John Todaro, who despite his $80 per share to $76 reduction is still a believer in the company's future.

According to reports, Todaro expressed some concern about the company's future take from cryptocurrency trading, following the run-up with. However that segment is small compared to the company's overall operations, the analyst wrote.