Stock trading app eToro IPOs, debuts on Nasdaq

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Shares of eToro, a popular stock brokerage platform, soared in their Nasdaq debut after the company successfully raised nearly $310 million in its initial public offering. The stock opened at $69.69, a 34% increase from its IPO price, and closed at $67 per share, marking a 29% gain and pushing its market capitalization over $5.4 billion.

eToro, based in Israel, sold almost six million shares at $52 each, surpassing the expected range of $46 to $50. Additionally, existing investors sold nearly six million additional shares. At the IPO price, the company was valued at around $4.2 billion.

Investors are closely watching eToro as a potential indicator of renewed interest in IPOs, following a period of market uncertainty. CEO Yoni Assia explained that the company decided to go public as they saw signs of market stabilization, particularly in the CBOE Volatility Index, after concerns over tariffs.

eToro is not the only company testing the IPO waters. Fintech company Chime filed its prospectus with the SEC, while Hinge Health began its IPO roadshow with plans to raise up to $437 million in its offering.

Founded in 2007 by brothers Yoni and Ronen Assia and David Ring, eToro generates revenue through trading-related fees and non-trading activities like withdrawals. The company saw a significant increase in net income last year, jumping from $15.3 million in 2023 to $192.4 million in 2024.

eToro has also been expanding its presence in the cryptocurrency market, with revenue from crypto assets more than tripling to over $12 million in 2024. Approximately a quarter of its net trading contribution came from crypto last year, up from 10% in 2023.

Looking ahead, eToro expects crypto assets to account for 37% of its commission from trading activities in the first quarter of this year, slightly down from 43% the previous year.

Major investors in eToro include Spark Capital with a 14% stake post-offering, BRM Group with 8.7%, and CEO Yoni Assia with 9.3% ownership. The successful IPO marks a significant milestone for the company as it continues to grow and expand its presence in the financial markets.