Shares of eToro Group (ETOR +3.41%) gained 16.1% this week, according to data from S&P Global Market Intelligence. A stock brokerage platform focused on traders in Europe and the United States, it is benefiting from the bull market and increased trading volumes around the world. Despite this, the stock is down close to 40% this year, even after this post-earnings bump.
Here's why eToro stock jumped this week, and whether it is a buy with the stock trading cheaply throughout 2025.
NASDAQ: ETOR
Key Data Points
Riding the stock market boom
eToro is growing on the back of the 2025 bull market in stocks, as well as cryptocurrencies and commodities like gold. The company's total accounts grew 17% year over year last quarter to 3.76 million, total assets under management grew 73% to $20.5 billion, and net contribution revenue grew 28% to $215 million. The business is also profitable, with net income of $57 million in the quarter, up 48% year over year.
The bull market has helped eToro fire on all cylinders with its financial growth. However, its stock price is still down close to 40% this year, which is why management just authorized a $150 million share repurchase program, or 4.4% of its current market cap of $3.39 billion. eToro is now consistently profitable, allowing it to return cash to shareholders in the form of share repurchases, which will help boost long-term earnings per share (EPS).
Image source: Getty Images.
Is eToro stock cheap?
Investors are likely nervous about eToro stock and how it would perform in a market downturn. However, if we look at the company's trailing net income of $211 million, shares still trade at a cheap price-to-earnings ratio (P/E) of 16. Now, the company is returning cash to shareholders through stock buybacks in order to take advantage of this cheap share price.
eToro continues to grow its users, which will lead to more profits on the trading of stocks, cryptocurrencies, and commodities over the long term. It is adding new features such as wealth management and banking tools. This will help the company deepen its relationship with existing customers, driving even more revenue and earnings growth in the future.
This underfollowed brokerage might just be a hidden gem in the financial technology (fintech) sector. eToro stock still looks cheap after its post-earnings bump.
