Shares of
eToro (NASDAQ: ETOR) closed
at new all-time lows yesterday (Wednesday), slipping 5.35% to end the day at
$39.06. The stock has now dropped over 40% since May’s debut and trades visibly
below its initial public offering (IPO) price of $52.
The
declines most likely came in response to an updated recommendation from Mizuho
analysts, who lowered the price target.
eToro Shares Slides to
Record Lows Despite Tech Rally
The decline
came on a day when the Nasdaq Composite, weighted heavily toward technology
companies, rose 0.49% to finish above 24,800 for the first time ever. That
divergence highlighted the recent pressure on eToro’s shares, even as broader
sector momentum remains strong.
Mizuho
lowered its price target for eToro to $65 from $80, pointing to weaker trading
activity per account and a lower take rate. Still, the bank maintained an “Outperform”
rating, noting longer-term
opportunities around tokenized stocks,
Other
brokerages have trimmed estimates but vary in their stance on the stock. KBW
cut its target to $60, Jefferies moved to $63, and UBS reiterated a Neutral
rating with a $58 target. At the more bullish end, Citizens JMP reaffirmed its “Outperform”
rating with an $85 target.
Stock Extends Slide Since
IPO
eToro
debuted on Nasdaq in May at $52 per share before opening its first day of
trading at $69.69. After initially gaining attention with investor excitement
around trading platforms, the stock has steadily trended lower. At Wednesday’s
close, it is now 44% off its first-day opening level.
In the
second quarter alone, the
company’s shares fell 38%. By comparison, other publicly listed retail
trading firms performed much better. Nasdaq-listed Robinhood climbed 53% to a
record high above $143, while Interactive Brokers gained 24%, also testing new
records above $70.
On the
London market, CMC Markets dropped 5% to just under 240 pence, while Plus500
fell by a similar margin, retreating from an all-time high of 3,492 pence.
In Warsaw,
XTB posted a sharper 12% decline, though the stock still trades near record
highs, unlike eToro, which remains closer to its lows.
eToro’s
chart performance could improve with the upcoming Q3 report, though investors
will have to wait a bit longer, as it is scheduled for release in early
December.
Read other eToro-related stories:
This article was written by Damian Chmiel at www.financemagnates.com.
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