eToro Group (NASDAQ: ETOR) stock fell sharply on August 12 after Cantor Fitzgerald lowered its price target to $53 from $61, citing weaker-than-expected crypto trading activity and softer July volumes.
Cantor maintained its Overweight rating but reduced its 2026 and 2027 estimates for net contribution and adjusted EBITDA following a second-quarter performance that came in below the firm’s expectations.
Why Did Cantor Cut eToro’s Stock Price Target?
Cantor Fitzgerald said eToro’s second-quarter net contribution and adjusted EBITDA were below consensus expectations, while its crypto take rate also came in below the firm’s forecast.
The brokerage also pointed to weaker-than-expected ECC, or equities, commodities and currencies, trading volume. July activity was described as relatively weak, prompting further reductions to its 2026 and 2027 estimates.
Cantor continues to value eToro using a 12x multiple of its 2026 EV/EBITDA estimate, but the lower earnings forecast resulted in the price-target reduction to $53.
eToro Stock Falls 13.7% as Crypto Activity Slows
eToro shares closed at $29.33 on August 12, down 13.7% on the day, according to Google Finance. Today’s drop isn’t standalone, yesterday it dropped 8%, as of now the stock has declined 18.8% over the past week, extending pressure on the brokerage following its second-quarter results.
The weakness comes despite eToro remaining profitable and continuing to expand its user base.
The company reported 4.28 million funded accounts, while user growth accelerated in July. However, the trading mix has continued shifting away from crypto toward equities and commodities, reducing the contribution of crypto activity to the platform’s overall trading performance.
Crypto Trading Becomes a Drag on eToro’s Outlook
eToro’s recent operating data has shown a clear divergence between crypto and traditional markets.
In May, crypto trades fell 31% year-over-year to 2.2 million, while capital-markets and ECC trades increased 59% to 64 million. The invested amount per crypto trade also declined 28% to $203.
That trend matters because eToro generates revenue from trading activity across several asset classes. Weakness in crypto therefore does not necessarily translate into weaker overall business performance, but it can pressure the company’s estimates when crypto activity falls short of expectations.
The company has also been expanding products beyond crypto, including its new AI-focused app, 24/7 trading capabilities and additional investing tools.
eToro Q2 Results Beat on EPS Despite Weak Trading Trends
eToro’s second-quarter results were not uniformly weak. The company reported adjusted diluted earnings per share of $0.68, above the $0.65 forecast, while net contribution increased 9% year-over-year to $229 million and adjusted EBITDA rose 9% to $78 million.
Funded accounts also increased 18% year-over-year to 4.28 million, according to the results cited in the analyst report.
The mixed performance highlights the issue facing investors: eToro is still expanding its customer base and remains profitable, but lower crypto activity and changing trading behavior are putting pressure on the earnings assumptions used to value the stock.
What Is the eToro Stock Price Target?
Cantor Fitzgerald now has a $53 price target for eToro, down from $61, while maintaining its Overweight rating. At the August 12 closing price of $29.33, that target implies substantial potential upside, although the brokerage’s revised estimates reflect weaker near-term operating expectations.
Other analysts have taken different views of the stock. According to InvestingPro Tips, four analysts have revised their earnings downwards for the upcoming period, though the company remains profitable with analysts expecting continued profitability this year. Citizens has maintained a $90 target, while Mizuho previously lowered its target to $52, also citing weaker crypto trends.
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