Many good points by Ed and Darren above.
I just add another point. Many of these newly-listed brokers tend to go through a ‘Boom-Bust’ cycle, where prices slump by 80-90 percent following their IPOs.
For example:
Coinbase (COIN) – $400 to $40 (-90%)
Robinhood (HOOD) – $80 to $8 (-90%)
WeBull (BULL) – $70 to $8 (-89%)
et cetera.
eToro (TOR) is no different. Its share trend is just following the script of these financial stocks.
Perhaps investors are waiting to see if these stocks can survive a severe bear market before investing for the long term.
Who knows, the next bull market may result in a sharp price appreciation if ‘things work out’ for the broker. From their 2022/23 lows, COIN rose 10x while HOOD rallied 15x.
I would keep an eye on the stock and see if their fundamentals (revenue, margin, profits etc) are worthing buying for the long term.
