Key Points

eToro began trading on the Nasdaq, opening well above its IPO price. The company's net income skyrocketed from 2023 to 2024. 10 stocks we like better than eToro Group ›

Shares of eToro(NASDAQ: ETOR) are soaring in their trading debut on Wednesday. The stock and crypto trading platform's shares surged 28.2% as of 2:20 p.m. ET after opening at $69.69, which was 34% above its initial public offering (IPO) price of $52. The impressive debut comes as the S&P 500 was flat while the Nasdaq Composite gained 0.5%.

The trading app's stock began trading today. The successful IPO signals potential renewed interest in public offerings.

Strong pricing above the expected range

eToro's IPO raised nearly $310 million after selling roughly 6 million shares at $52 each, above the expected price range of $46 to $50. An additional 6 million shares were sold by existing investors.

The ability to price above the expected range and see significant first-day gains was a positive sign for the rest of the market. Recent high-profile IPO filings from fintech company Chime and digital physical therapy provider Hinge Health suggest that IPOs may soon have the resurgence many expected from the reelection of Donald Trump.Image source: Getty Images.

Strong financial performance underpins the offering

eToro reported that its net income increased almost 13-fold last year to $192.4 million from $15.3 million in 2023. Much of this was from its exposure to the crypto market. For the first quarter of 2025, eToro expects crypto assets to account for 37% of its commission from trading activities. This is actually down from 43% a year earlier, but that is more a reflection of the broader market activity than the company's operations.

I would wait until the post-IPO volatility calms down before investing, but eToro looks to be headed in the right direction and is a solid pick.

Should you invest $1,000 in eToro Group right now?

Before you buy stock in eToro Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and eToro Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider whenNetflixmade this list on December 17, 2004... if you invested $1,000 at the time of our recommendation,you’d have $613,951!* Or when Nvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you’d have $796,353!*

Now, it’s worth notingStock Advisor’s total average return is948% — a market-crushing outperformance compared to170%for the S&P 500. Don’t miss out on the latest top 10 list, available when you joinStock Advisor.

See the 10 stocks »

Story Continues

*Stock Advisor returns as of May 12, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why eToro Stock Is Skyrocketing Today was originally published by The Motley Fool

View Comments