Yes

>>eToro: Excessive pessimism overlooks the broader scope of U.S. growth (Upgrade)

eToro: Excessive pessimism overlooks the broader scope of U.S. growth (Upgrade)

crypthub

1 day ago

Valuation and Oversold Position

eToro trades at roughly 4 × FY26 adjusted EBITDA, a stark discount to peers. The stock has fallen about 40 % since its IPO, leaving it at single‑digit EBITDA multiples. Despite this, fundamentals remain solid and the market’s pessimism appears disproportionate.

Growth Drivers and Metrics

U.S. expansion, highlighted by the CopyTrader launch, is adding funded accounts (+30 k since October). Stock trading volumes grew 16 % YoY, while crypto contributes only 26 % of net contribution margin. The platform’s total funded accounts now total 3.79 million, offsetting weaker crypto activity.

Risks and Investment Thesis

Risks include continued crypto price declines, interest‑rate pressure, and the challenge of gaining trust of seasoned U.S. investors. However, these concerns are largely reflected in the current price. The combination of deep valuation, expanding U.S. presence, and modest earnings expectations supports a strong‑buy rating ahead of Q4 results.