eToro stock plunges over 14% as sellers overwhelm despite profit beat and TradeZero acquisition

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EToro slides 14.35% today on selling

Highlights

eToro Group posted Q2 2026 adjusted diluted EPS of $0.68 and revenue of $1.59 billion, both beating expectations.
The company agreed to acquire U.S. brokerage TradeZero for up to $231 million, aiming to expand into the U.S. and Canadian markets pending regulatory approval.
Shares of eToro last traded at $29.12, down 14.35% for the session, as technical indicators show pronounced weakness with a very high probability of further downside toward key support at $25.25.

Profit beat and TradeZero deal undercut by persistent sell flows

eToro Group Ltd reported adjusted diluted EPS of $0.68 for Q2 2026, exceeding expectations. The company announced an agreement to acquire U.S. brokerage TradeZero for up to $231 million in cash and newly issued shares, with closure expected in the first half of 2027 pending regulatory approval. Q2 revenue reached $1.59 billion, net income was $53.5 million, funded accounts grew to 4.28 million, and advancements in AI-powered offerings accompanied an increased share of U.S. equities commissions. The TradeZero transaction is set to expand eToro’s presence in the U.S. and provide access to the Canadian market, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees a worrying disconnect between eToro’s solid fundamentals and sharp technical weakness. He notes persistent selling pressure, with the price now trading below all key moving averages. Despite the profit beat and TradeZero acquisition news, bearish momentum remains dominant in both sentiment and technical signals. Oversold indicators are not yet triggering a reversal. "With the risk of a deeper breakdown below $25.25, prudent traders should remain defensive and avoid bottom-fishing at these levels."

Viktoras Karapetjanc, expert at Traders Union, highlights the robust earnings and strategic U.S. market expansion as positive catalysts for eToro. He believes the TradeZero deal unlocks significant growth potential and new geographic reach. Such corporate moves strengthen the group’s long-term fundamentals despite near-term volatility. "Investors should keep their focus on the bullish structure underpinning eToro’s business, as the current selloff presents attractive opportunities for forward-looking participants."

Sholanke Dele, market strategist, remains skeptical of the current sentiment around eToro. He notes that heavy selling persists despite upbeat earnings and M&A news, with market participants clearly unconvinced. Macro factors likely amplify the downward bias and increase risk of further pain. "Until broader sentiment shifts, I see limited incentive to take on exposure here."

Oversold conditions intensify as downside momentum broadens

eToro is trading below the 20-day, 50-day, and 200-day moving averages ($36.69, $38.29, and $35.66 respectively), confirming persistent downward pressure across all timeframes. The nearest technical ceiling stands at $29.48 and the closest floor is projected at $25.25, with longer-term trend confirmation further underscored by a bullish alignment between the 50-day and 200-day averages. Momentum indicators signal pronounced weakness: the Relative Strength Index (RSI) is 34.71 (Sell), MACD is negative at -1.21 (Sell), and the Average Directional Index (ADX) at 8.83 is Neutral, indicating low trend strength. Both the Stochastic RSI and Commodity Channel Index (CCI) give oversold readings, while Bull/Bear Power (BBP) at -1.48 confirms sellers dominate intraday momentum with an oversold bias. The stock last traded at $29.12, down $4.88 or 14.35% for the session, opening lower by roughly $2.97 (downside gap of 8.74%) and hovering near the intraday low. Intraday volatility stands at 6.72%, reflecting sharp selling pressure after the open. The Awesome Oscillator does not show a directional bias, and overall, intraday weakness is consistent with negative momentum signals.

Earlier, analysts noted that eToro shares were under sustained selling pressure despite continued growth and strategic expansion plans. The current analysis strengthens this bearish outlook, with price action now dominated by downside risk and key support at $25.25 marking the critical level to monitor for renewed volatility.

Source of Data: ETOR Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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