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Is ETOR a good stock to buy? We came across a bullish thesis on eToro Group Ltd. on The Diversified Fins Analyst’s Substack. In this article, we will summarize the bulls’ thesis on ETOR. eToro Group Ltd.'s share was trading at $37.36 as of April 21st. ETOR’s trailing and forward P/E were 16.46 and 12.92 respectively according to Yahoo Finance.
eToro Group Ltd. engages in the trading business. ETOR reported a solid 4Q25 earnings update marked by revenue outperformance, improving diversification across revenue streams, and an expanded capital return program that underscores management confidence in long-term value. Total net contribution reached $227M, up 6% sequentially but down 10% year over year, with the annual decline primarily driven by a sharp contraction in crypto trading contribution, which fell 73% year over year to $26M.
This weakness was partially offset by strong momentum in equities, commodities, and currencies, which rose 45% year over year to $116M, alongside resilient growth in interest income and subscriptions, highlighting a gradual shift toward more stable revenue sources beyond crypto volatility. Operating expenses came in largely controlled at $150M, down 2% year over year, allowing adjusted pre-tax margins to remain healthy at 33.9%, while adjusted EPS of $0.68 modestly declined year over year but improved sequentially.
Notably, results exceeded expectations, with revenue beating consensus by 4%, expenses slightly below forecasts, and EPS outperforming by 13%, reinforcing operational discipline. Key operating metrics showed continued platform engagement, with funded accounts rising to 3.81M and equities-related trading activity growing 28% year over year, though crypto trading volumes remained under pressure, contributing to an 11% sequential decline in customer assets.
Strategically, eToro strengthened its shareholder return framework by increasing its buyback authorization by $100M and announcing a $50M accelerated share repurchase, signaling management’s belief that the stock is undervalued. The company continues to execute across four core product pillars—trading, investing, wealth management, and neobanking—while expanding geographic reach, deepening product capabilities such as 24/5 trading and expanded crypto offerings, and embedding AI across operations to enhance scalability and efficiency.
Management also highlighted plans to increase marketing investment over time to accelerate growth, supported by strong cohort returns, positioning the platform for broader global adoption. Overall, despite crypto-related headwinds, the quarter reflected improving diversification, disciplined execution, and a clear capital allocation commitment that supports a constructive long-term outlook.
Previously, we covered a bullish thesis on Robinhood Markets, Inc. (HOOD) by kumaramit0703 in March 2025, highlighting its evolution into a diversified fintech platform with strong user engagement and crypto-driven growth optionality. HOOD’s stock price has appreciated by approximately 101.93% since our coverage. The Diversified Fins Analyst shares a similar view on eToro (ETOR), emphasizing diversification and capital returns.
EToro Group Ltd. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held ETOR at the end of the fourth quarter which was 26 in the previous quarter. While we acknowledge the risk and potential of ETOR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ETOR and that has 10,000% upside potential, check out our report about this cheapest AI stock.