On Wednesday, eToro’s shares popped almost 29% on their Nasdaq debut. This increase followed the company’s successful $310 million initial public offering (IPO). The democratizing trading app is lauded for disrupting the market for stock and cryptocurrency trading. It ended up selling almost 6 million shares at $52, above the anticipated price range of $46 to $50.
Adding to the demand, eToro sold its own shares, increasing the total demand. Current investors helped drive this momentum further by selling just under six million additional shares. That strong performance on its opening day of trading indicates a clear wave of momentum behind eToro. That increasing passion around the enterprise crypto currently has the corporation banking massive earnings from it.
Brothers Yoni and Ronen Assia, together with David Ring, started eToro in 2007. Since that time, eToro has evolved into one of the premier brands of the online trading industry. The company’s fiscal picture shows that the financial health of the company has been turned around 180 degrees. Last year, net income jumped nearly thirteen times to $192.4 million, up from only $15.3 million in 2023.
eToro’s revenue from cryptocurrency assets experienced astonishing growth, more than tripling to just over $12 million in 2024. In fact, crypto assets made up one-fourth of eToro’s net trading contributions last calendar year, a sharp rise from only 10% in 2023. eToro is projecting that crypto assets would account for 37% of its trading commissions in the first quarter. This represents a small decrease from 43% during the comparable period last year.
On its opening day on the market, eToro’s stock debuted with an opening price of $69.69, 34% higher than the company’s IPO valuation. By the end of trading day, shares were closing at $67. Therefore, this surge was more than enough to push the total market capitalization over the $5.4 billion mark. CEO Yoni Assia, for example, continues to exercise control over 9.3% of the company’s shares.
eToro first announced their intent to go public in 2021 by merging with a special purpose acquisition company, or SPAC. At the time, this move would have pegged the firm’s value at more than $10 billion. Yet these plans were put on hold in 2022 when equity markets around the world took a tumble. Instead, the company stuck to its guns and continued down the path of a classic IPO.
Yoni Assia stated, “We felt that we’re seeing the light at the end of the tunnel of the correction in the markets.”