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eToro Group Overview
Less than a month ago, I initiated coverage of eToro Group Limited (NASDAQ:ETOR) for Seeking Alpha prior to the company's IPO. While I rated the stock a 'buy' based on encouraging trends from
eToro Earnings: The Good, The Bad, And The Ugly (Rating Downgrade)
Summary
- Downgrading eToro stock to 'hold' due to concerning Q1 20225 signals, especially negative gross margins in the core cryptoasset business.
- Revenue grew 11% year-over-year, with diversification beyond cryptoassets and strong growth in funded accounts and interest-earning assets.
- Despite top-line growth, eToro's net income declined 6.5% year-over-year, driven by surging marketing and SG&A expenses.
- ETOR remains less overvalued than peers, but I need to see another quarter of results before considering an upgrade from 'hold.'
Former media research analyst. Main coverage areas are crypto, BTC miners, metal, and media equities. I'm not an investment advisor. I just share what I do with my own capital and why. Outside of Seeking Alpha, I also write the Heretic Speculator newsletter over at Substack.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of COIN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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