Cathie Wood’s ARK Invest bought 49,922 shares of the newly-listed trading and investment platform eToro (ETOR) yesterday. ETOR stock dropped 11.9% on Tuesday, despite beating first-quarter fiscal 2025 expectations. The ARK Fintech Innovation ETF (ARKF) purchased ETOR stock worth $3.79 million on June 10, and the trade was revealed as part of the fund’s daily investment activity.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Wood seems to have solid confidence in the future potential of eToro’s trading platform. She bought shares worth $9.4 million during the company’s blockbuster IPO (Initial Public Offering) on May 14. ARK Invest further purchased 25,400 shares of ETOR on June 4. As of date, the ARKF ETF holds a total of $12.47 million worth of ETOR stock, accounting for 1.16% of its portfolio.
On the sell side, Wood’s ARKF ETF sold 29,660 shares of its ARK 21Shares Bitcoin ETF (ARKB) worth $155,598. The current volatility in the cryptocurrency market may have prompted this sell decision.
eToro Reports Solid Q1 Results
eToro reported diluted earnings per share (EPS) of $0.69, surpassing the consensus of $0.61. However, the figure came in below Q1FY24’s number of $0.76. Meanwhile, total revenues rose 11.2% year-over-year to $3.76 million, driven by positive net trading income and a jump in revenue from crypto assets.
Moreover, the platform witnessed a 14% surge in funded accounts to 3.58 million and a 21% growth in assets under administration, reaching $14.8 billion. The company also expanded its geographical footprint by launching futures in Europe and options in the UK, adding 40 new crypto tokens, and extending trading hours for certain stocks and ETFs. On the banking side, eToro also expanded its wealth management and neo-banking services.
Is eToro Stock a Buy?
Analysts remain divided on eToro’s long-term stock trajectory. On TipRanks, ETOR stock has a Moderate Buy consensus rating based on eight Buys and six Hold ratings. Also, the average eToro price target of $75.26 implies 12.4% upside potential from current levels.
