eToro Group stock price continued its strong sell-off this week, reaching its lowest level since February this year. It has slumped by 40% from its highest point this year, erasing millions of dollars in value. This sell-off may continue as the stock forms an inverted cup-and-handle pattern.
eToro stock has slumped as growth reverses
ETOR stock has been in a strong sell-off this year, a trend that continued after it released its earnings report on August 10 this year. Its results showed that its revenue growth slowed because of the crypto winter.
The revenue rose by 9% in the second quarter to $229 million, driven by its equites trading business. Equities now account for 60% of its trading volume and is followed by commodities.
The results also showed that its number of customers rose to 4.28 million, up by 18% from the same period last year. This increase led to an increase in assets under administration, which rose to $19.2 billion from $17.5 billion in Q2’25. Total trades also jumped by over 60% during the quarter.
eToro’s revenue growth is expected to remain under pressure this year because of the recent crypto weakness. Yahoo Finance data estimates that the company’s third-quarter revenue is expected to drop by 5.3% to $203.1 million.
eToro’s earnings per share are also expected to drop from 53 cents in Q3’25 to $0.4 in the last quarter. For the year, analysts expects that its annual revenue is expected to come in at $918 million, up by 5.80% YoY. This revenue growth is expected to be lower than other companies, including Robinhood Markets, which is expected to grow by 17% this year. WeBull’s revenue is also expected to grow by over 40% this year.
Analysts have mixed opinions on eToro stock. In a recent note, Cantor Fitzgerald reiterated its overweight rating, while Mizuho’s Dan Dolev maintained the outperform rating, even when lowering the target from $52 to $43. Canaccord Genuity’s Joseph Vafi also reiterated his buy rating.
One of the main reasons for this is its valuation, which shows that it has a forward price-to-earnings ratio of 10.3, much lower than the S&P 500 estimate of 19.1. Its forward PEG ratio of 0.59 is also lower than other companies.
eToro share price technical analysis
ETOR stock chart | Source: TradingView
The daily chart shows that the ETOR stock has retreated in the past few months. A closer look shows that it formed an inverted cup-and-handle pattern, which is made up of a horizontal support and a rounded top. It formed the handle section between August 8 and September 3.
The stock has already moved below the lower side of the pattern and is now nearing the key support of $24.80, its lowest point in February. A drop below that level will point to more downside, potentially to $20.
eToro also remains below the 50-day moving average, while the Average Directional Index (ADX) has jumped to 25.56, its highest level since August 26. A rising ADX is usually a sign that the downtrend is gaining momentum.
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