Six months after IPO, eToro turns to $150M buyback to lift slumping stock
Strong quarterly earnings contrast with lingering investor skepticism.
The recent market upswing is also benefiting Israeli trading platform eToro, which went public in New York six months ago.
The company reported strong third-quarter results, sending its stock slightly higher in early trading, though it remains about 30% below its IPO price.
In an unusual move for a newly listed company, eToro announced a $150 million share buyback plan, signaling confidence from management and the board that the current share price undervalues the company.
eToro beat analysts’ expectations with a sharp rise in net profit, reaching $56.8 million in the third quarter compared with $38.5 million in the same period last year.
The company’s key performance metric, net contribution, which reflects trading revenue minus transaction costs and fees, climbed 28% to $215 million.
The number of active funded accounts increased 16% to 3.73 million, while assets under management surged 76% to $20.8 billion.
Although most of eToro’s activity remains focused on cryptocurrency trading, the platform also enables users to invest in stocks. What differentiates it from larger U.S. rival Robinhood is its social trading network, which allows users to follow and automatically mirror the portfolios of top-performing investors.
