eToro (NASDAQ:
ETOR) shares closed at
their highest level in seven months on Friday, extending a recovery that has
lifted the retail brokerage about 70% from the record lows it touched in
February.

The stock
rose more than 5% to finish just below $42, and traded as high as $43.32 during
the session, its strongest level since early December.

eToro’s Climb Back From
February’s Record Lows

The latest
leg builds on momentum that started after eToro reported first-quarter results in mid-May.

The shares
now sit above their 200-day exponential moving average, a marker technical
traders watch for longer-term trend, and Friday’s turnover of almost 3 million
shares ran well above the daily average of about 1.1 million.

The
contrast with three months ago is sharp. eToro
fell to an all-time low near $25 in February, when a crypto selloff pulled
retail trading stocks lower across the board. The Nasdaq-listed company, based
in Israel and incorporated under British Virgin Islands law, has since
recovered most of that ground.

It still
trades well below the $79.96 peak it reached soon after its May 2025 IPO, when heavy demand pushed the
listing price above its marketed range.

The round
trip from there to $25 and back toward $42 captures how closely the stock has
tracked sentiment in crypto and retail trading.

Governance Votes and a
Goldman Target Bump Drive the Latest Move

Two
corporate filings gave investors something to react to. eToro said shareholders
approved every proposal at its May 26 annual meeting in Bnei Brak, Israel, with
holders of both share classes voting in line with the board’s recommendations.

Two days
later the company filed a revised charter, its Second Amended and Restated
Memorandum and Articles of Association, with the British Virgin Islands
registrar.

eToro said
the update refines its governance setup and could add flexibility as it
operates as a foreign private issuer in the US. The company framed the changes
as administrative rather than a shift in strategy.

The bigger
catalyst came from Wall Street. Goldman Sachs analyst James Yaro raised his
price target on the stock to $43 from $39 on May 28, while keeping a Neutral
rating. That capped a steady climb in his view, after he had already moved the
target to $39 from $35 earlier in the month.

Crypto Still Anchors
Revenue as US Rivals Pile In

eToro’s
recovery is playing out in a crowded field. Robinhood, its closest US-listed
peer, hit a four-year high earlier this
year after closing
its Bitstamp acquisition, and rivals including Webull are chasing the same
retail traders with commission-free equities and crypto.

The
competition has pushed eToro to expand round-the-clock trading on US stocks and to court crypto depositors with
stock rewards.

That last
point matters, because digital assets still drive the business. Crypto
accounted for about 91% of eToro’s revenue in recent quarters, a concentration
that ties the stock’s fortunes tightly to token prices.

CEO Yoni
Assia has leaned into the cycle rather than away from it, telling analysts on
the latest earnings call that “crypto downtimes are the time to
build.”

The first
quarter offered some cover for the bulls. eToro
reported net income up 37% to $82 million, with net contribution rising 19%
from a year earlier to $258 million, helped by a jump in commodities
trading. Adjusted earnings of $0.91 a share beat the $0.69 analysts expected.

Average
trade sizes, though, shrank
by nearly half year over year, and assets under management slipped from the
prior quarter.

Analysts Split on Where
eToro Goes From Here

The
brokerage’s research coverage now spans a wide range. Goldman’s $43 target sits
near the bottom, while TD Cowen lifted its target to $52 in mid-May, and
Needham and Jefferies carry Buy ratings with targets of $66 and $53.

The
consensus price target sits around $56, according to data compiled by
MarketBeat, implying meaningful upside if the more optimistic calls prove
right.

For now the
move has pushed eToro’s market value back above $3.3 billion.

This article was written by Damian Chmiel at www.financemagnates.com.

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