Robinhood Knockoff eToro Files for IPO with $5 Billion Valuation Despite “Rollecoaster” Financials…

Looks like eToro, the trading platform that wants to be Robinhood but with a Euro accent, is taking another swing at going public. The company has reportedly filed confidentially with the SEC for a U.S. IPO, aiming for a $5 billion valuation. If that number feels aspirational, consider this: eToro’s last attempt to go public in 2021 through a SPAC deal valued the company at over $10 billion. That deal, much like SPACs in general, crashed and burned, leaving eToro stuck in private-market purgatory. Now, they’re back—leaner, humbled, and apparently fine with leaving half their valuation on the cutting room floor.

The move isn’t entirely out of left field, though. Sure, 75% of eToro’s revenue comes from Europe, but its CEO, Yoni Assia, is playing the long game. According to him, listing in the U.S. isn’t just about the money—it’s about the vibes. “Very few of our global clients would trade UK shares,” Assia told The Financial Times, essentially saying the London Stock Exchange is like the Blockbuster of capital markets: irrelevant, unsexy, and not where the cool kids hang out. By planting its flag on Wall Street, eToro is betting that U.S. investors bring the kind of deep liquidity and global clout the platform needs to finally stop being Robinhoods kid-brother. 

However, while this is no doubt exciting for eToro, let’s not forget the baggage it holds going into this IPO.  In 2023, the company was slapped with a $1.5 million fine by the SEC and had to restrict cryptocurrency trading in the U.S. to just Bitcoin, Bitcoin Cash, and Ether. The crypto-friendly platform also saw its revenue flatline at $630 million last year, down 50% from its $1.2 billion heyday in 2021. Additionally, it lost $40 million in 2022 before eking out a $107 million profit in 2023.

(Source: The Daily Hodl) 

So why now? Why bother with an IPO? Well, eToro raised $250 million in 2023 at a $3.5 billion valuation, with investors like SoftBank and Ion Group clearly hoping their money doesn’t go up in smoke. And to its credit, eToro does have a decent pitch: a platform offering trading in everything from stocks to commodities to crypto, with a social twist that lets you copy trades from other users. It’s like Instagram, but instead of thirst traps and memes, you get to watch someone blow their savings on leveraged plays in copper futures LOL.

The real question though is  whether the market has the appetite for another trading app IPO. After the Robinhood debacle—where the stock launched like a meme coin and then cratered just as fast—investors are understandably cautious. And again, eToro isn’t exactly skating in with a pristine narrative. Its revenue is stagnant and regulatory scrutiny is basically its new roommate. Yet here it is, chasing a $5 billion valuation, with ambition as its drug of choice.

(Source: Jerusalem Post) 

What’s more is that Goldman Sachs, Jefferies, and UBS are leading the IPO, which is expected to hit the New York markets by Q2 2025. If the deal goes through, it’ll mark a pivotal moment for eToro—a chance to prove it can thrive outside the SPAC dumpster it crawled out of. But if it flops, well, at least it’ll have plenty of company in the “overhyped IPOs that went nowhere” bin. 

For now, eToro’s filing is confidential, but once the wraps come off, expect the market to take a hard look at its books, its growth prospects, and whether its social-trading mechanism still holds water. Because if we’ve learned anything from the last few years, it’s that retail investors are notoriously bi-plar, regulators are ruthless, and Wall Street doesn’t care about your vibes—it cares about your bottom line.

(Source: Giphy) 

So with that, keep an eye on this story—especially if IPOs are your loved language. It’ll be interesting to see how they fare in the public markets with Robinhood. But hey, with Robinhood backstabbing its consumers like it has—maybe eToro has a chance. In the meantime, place your bets accordingly and stay safe and stay frosty, friends! Until next time… 

P.S. Trump is officially back in the White House, meaning we could see fireworks at any moment. Make sure you are prepared and deciphering the market for the most explosive opportunities with Stocks.News premium. Don’t say I didn’t warn ya! 

Stocks.News holds positions in Robinhood as mentioned in the article.