eToro (ETOR)
The desk's stance
On our research list, not on the slate.
What the company does
Israeli social-trading platform — copy-trading, stocks, and crypto for retail across Europe and beyond, listed on Nasdaq since 2025.
In short: Social copy-trading brokerage platform. Category: Social Multi-Asset Retail Broker. Sector: Financial Services, Capital Markets.
G-Street Value and Score
G-Street Value: $32.69, computed Oct 18, 2026 (confidence: low).
How we got there: 50% analyst leg $40.63 (street consensus, after 8% optimism discount) + 50% GainStreet factor value $24.75 (8.1× fwd EPS anchored to financials multiples) — analyst and factor views diverge >50%, confidence reduced. 5 analyst targets have no linked source and are shown but not counted; this value will not open a position until they are sourced.
G-Street Score: 32 out of 100 (Weak).
- Top-line growth & guidance: 0 of 32
- Margin power: 3 of 15
- Revenue visibility & quality: 6 of 11
- Profitability & balance sheet: 17 of 24
- Capital allocation & governance: 4 of 6
- Valuation, sentiment & momentum: 2 of 12
Our current thesis
Updated Oct 17, 2026
The thesis
- Net cash balance of $910.9M provides substantial balance sheet downside protection and liquidity.
- Proprietary CopyTrader ecosystem supports sticky retail engagement across 4.4M funded customer accounts.
- Trading at just 8.0x forward earnings with sustained quarterly free cash generation.
Risks
- Revenue decelerating sequentially and down year-over-year, sharply lagging peer IBKR's +26% expansion.
- Consecutive analyst price target cuts from Goldman Sachs, Susquehanna, and TD Cowen.
- Heightened exposure to retail trading volume cyclicality and crypto/macro market slowdowns.
What we're watching
- Third-quarter 2026 earnings report scheduled for November 10, 2026.
- Defense of critical 52-week low technical support at $24.09.
- Stabilization in sequential funded account growth and average monthly trading volumes.
Latest
ETOR trades near 52-week lows at $24.39 (8.0x forward P/E), pressured by negative top-line momentum and four downward EPS revisions over the past month. Quarterly net revenue contracted sequentially from $258.2M in 1Q26 to $229.4M in 2Q26, with consensus guiding for a further dip to $194.7M in 3Q26. Net cash of $910.9M represents over 46% of market cap, providing downside valuation cushion amid multiple analyst target cuts.
Key numbers
As of Oct 16, 2026: market cap $1.9B · revenue growth -24.0% year over year · gross margin 4.6% · net margin 2.2% · forward P/E 8.0 · next earnings Nov 10, 2026.
On the Gainz Lab maps
Who it does business with
- Robinhood competes with eToro — Social retail trading. Same first-time trader, different continent of origin — eToro’s copy-trading vs Robinhood’s feed.