Etoro (ETOR -8.06%) stock sank in Tuesday's trading. The company's share price ended the daily session down 8.3% and had been off as much as 9.6% earlier in the session. The sell-offs came despite the S&P 500 index rising 1.1% and the Nasdaq Composite climbing 1.3% on the day.
Major indexes notched record highs in Tuesday's session as the latest round of inflation data supported the case for significant interest rate cuts later this year, but Etoro stock still saw big sell-offs following the company's recent quarterly report. The fintech company actually posted second-quarter earnings that came in significantly ahead of the market's expectations, but the stock still got hit with a big sell-off in today's session.
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Etoro stock got hit hard after earnings
Etoro reported non-GAAP (adjusted) earnings per share of $0.56 in the second quarter, beating the average Wall Street analyst estimate's call for adjusted per-share earnings of $0.51 in the period. Meanwhile, the company notched a net contribution of $210 million in the period -- beating the consensus estimate's call for a net contribution of $194.7 million in the period. Etoro's net contribution figure was up 26% year over year, and adjusted net income was up roughly 23% year over year.
The company closed out the period with $17.5 billion in assets under its administration, up from 11.3% in the prior-year quarter. Despite some strong momentum in the period, investors were seemingly looking for stronger results -- and the company's share price has tumbled following the quarterly update.
What's next for Etoro?
While Etoro stock saw a big pullback following the company's Q2 release, the numbers in the report were generally quite strong. The company saw total funded accounts on its platform rise 14% year over year to reach 3.63 million. While some investors seemingly hoped that the company would post strong user growth, overall momentum was still pretty solid. On the heels of today's post-earnings pullback, the stock could be worth a look for risk-tolerant investors.
