The market is not exactly bullish on eToro (NASDAQ:ETOR).

Shares of the Israel based online trading firm fell by just over 1% on Friday, closing at their lowest level since eToro went public at $52 a share back in May. After hitting an intraday low of $36.20, eToro shares rebounded somewhat to close Friday at $37.06 – down 1.1% on the day, down 10% for the month of October, and down 29% since the May IPO.

eToro share price performance

Over that same period, the overall stock market has done very well, with the S&P 500, NASDAQ, and DJIA all sitting at or near all-time highs. And eToro NASDAQ-listed rival, Robinhood, has seen its shares more than double over that same period, sitting near an all-time high.

eToro share price, IPO to present. Source: Google Finance.

After initially trading up in the weeks after the IPO, eToro shares slipped below their IPO price in mid August after the company reported what were (apparently) disappointing Q2 results, and have continued downward since then.

eToro valuation

At its current price, eToro’s market cap is $3.1 billion – closer to the valuation we had discussed back when eToro first released its IPO prospectus (and detailed financials), than the $4.26 billion May 2025 IPO valuation.

So what’s going on?

Well, it seems to us, a few things.

First, and most importantly, it seems as though the market is not expecting a “bullish” Q3 results report from eToro. Ultimately, like most companies, eToro will be judged by its results. eToro is scheduled to report its financials for Q3 2025 early next week (after Robinhood reports this week), with Q3 representing eToro’s first full quarter operating as a publicly traded company.

Beyond the results, it seems us that some in “the market” find eToro’s financials tough to understand.

As we have explained before, in its Revenue calculation eToro includes “net” trading income from Equities, Commodities, and Currencies (as do most reporting brokers we follow), but gross Revenue from cryptoassets. Offsetting that is “Cost of revenue from cryptoassets”, in eToro’s Costs calculation section.

So what happens, is that Crypto activity appears to account for more than 90% of total Revenues at eToro, as per the chart above from eToro’s Q2 2025 report. This makes it more difficult to get a “real” grasp as to how eToro is doing quarter-to-quarter, and product-to-product. And the markets like straightforward and simple.