eToro Beats Q4 Profit Estimates as Trading Surge Lifts Shares 18%

Feb 17 (GeokHub) — Online trading platform eToro delivered stronger-than-expected fourth-quarter earnings, driven by robust activity across equities, commodities and currencies. The results sent the company’s shares soaring more than 18% in early trading.

The Tel Aviv-based fintech reported adjusted earnings of 71 cents per share for the quarter ended December 31, surpassing analyst expectations of 63 cents per share, according to market data provider London Stock Exchange Group.

Trading Income Jumps 43%

Net trading income from equities, commodities and currencies climbed 43% year-over-year to $115.6 million. The increase was fueled by heightened capital markets activity and shifting investor behavior across asset classes.

U.S. equity markets experienced a strong quarter as interest-rate cuts boosted investor sentiment. However, digital assets saw periods of volatility, prompting some traders to rebalance portfolios.

Notably, commodities emerged as a standout performer.

Shift from Crypto to Commodities

CEO Yoni Assia highlighted a behavioral shift among crypto-focused users. Clients who previously concentrated on digital assets increasingly rotated into commodities such as gold and silver.

According to Assia, lower volatility in crypto markets contrasted with higher price swings in commodities, attracting traders seeking new opportunities.

This migration reflects broader portfolio diversification trends as investors respond to evolving market conditions.

Assets Under Administration Rise

eToro’s assets under administration increased 11% year-over-year to $18.5 billion, underscoring continued platform growth despite fluctuating market sentiment.

However, net contribution — which factors in crypto revenue costs and margin interest expenses — declined 10% to $227 million.

Fintech Competition Intensifies

The company operates in a rapidly evolving fintech landscape, where digital platforms compete with traditional Wall Street institutions. Many newer firms appeal to younger investors through lower fees, user-friendly interfaces and broader access to alternative asset classes.

Meanwhile, investor concentration in AI-linked equities has pushed certain valuations sharply higher, raising debate among analysts about potential overheating in segments of the market.