Robinhood rival eToro agrees $120 million share sale at discounted valuation
The eToro logo is seen during the 2021 Web Summit in Lisbon, Portugal.
Pedro Fiúza | Nurphoto | Getty Images
Stock trading platform eToro agreed to a $120 million secondary share sale, giving the company a slightly lower valuation than the $3.5 billion it was valued at in a primary funding round earlier this year.
The Israeli digital brokerage, which offers users trading in stocks, crypto, and contracts for difference, gave early employees and angel investors a chance to sell shares to some of eToro’s existing investors, according to a memo to employees obtained by CNBC.
The round is a secondary share sale, meaning the company hasn’t issued any new shares and won’t net any income from the transaction. However, it’s an indicator of the price investors are currently willing to pay to own shares of the firm.
It comes after eToro last year scrapped its plans to go public in a merger with a blank-check company, Fintech V.
The deal would have valued the company at $10 billion, but a downturn in equity and crypto prices threw a spanner in the works, as investors reassessed their exposure to tech and retail brokerages suffered a slump in trading activity.
“As a business which continues to demonstrate sustainable, profitable growth we are considered an attractive investment opportunity by many investors,” Yoni Assia, eToro’s CEO and co-founder, said in the Monday memo to employees.
“This secondary transaction will give existing shareholders in eToro and veteran employees who have vested options the opportunity to sell a proportion of their shares to these purchasers.”
“This is not a primary i.e. eToro is not raising money — rather it is a moment for some long standing shareholders and employees to take some liquidity. As always, please maintain confidentiality and do not share any details of this potential transaction with anyone. Employees with eligible options will receive an email with further details.”
EToro most recently raised $250 million from investors at a $3.5 billion valuation, far lower than the $10 billion it was seeking in its bid to float via SPAC.
Investors in that round included SoftBank Vision Fund 2, ION Investment Group and Velvet Sea Ventures. The investment came in the form of an advance investment agreement, which is where investors pay in advance for shares that will be allocated at a later date, sometimes at a discount.
EToro agreed it would convert the investment to equity on the condition that the SPAC deal doesn’t go ahead — which it didn’t.
Earlier this year, eToro signed a partnership with Twitter, now known as X, allowing users of the social media platform to access stock and crypto trading by searching for so-called “cashtags,” which are searchable by adding a dollar sign before the ticker symbol of a stock or other asset.
EToro said it is looking to expand its partnership with Twitter, or X, in a number of ways. The company’s CEO recently met with X CEO Linda Yaccarino in New York to discuss working on expanding their partnership.
EToro, like many online wealth management platforms, benefited from the surge of demand during the Covid-19 pandemic when people were stuck indoors and had more time — and in some cases money — to splash a bit of their excess cash on stocks and other assets.
GameStop, and several other so-called “meme” stocks, skyrocketed in response to heightened retail investor demand which put pressure on short-selling funds.
More recently, online brokerage platforms have had a tougher time. The rising cost of living has made it tougher for consumers to part with the cash they were flush with during the days of Covid. Freetrade, the U.K. brokerage startup, slashed its valuation by a whopping 65% in a crowdfunding round, citing a “different market environment.”
Read the full memo eToro CEO Yoni Assia sent out to staff below:
Dear eTorians,
As August approaches I wanted to take a moment to acknowledge the many achievements of H1 and share an outlook for H2.
As outlined in July’s AHM, we had strong business performance in the first half of the year resulting in EBITDA (profits) of over $50 million. Funded accounts now stand at almost 3 million and our assets under administration (AuA) are $7.8 billion. This positive start to the year was driven by the rally in equity markets (in June we saw the highest volume of equities trading since 2021) plus a recovery in crypto markets. We have also maintained our focus on costs to ensure sustainable, profitable growth.
2023 to date has been very busy in terms of product development, launches and partnerships with highlights including: the significant upgrade to our charts via a partnership with TradingView (more coming soon), an ISA with MoneyFarm, major milestones in terms of UX optimization including the new AI assistant, the launch of the amazing new eToro Academy, the launch of extended hours trading, expanding our football sponsorships to include women, adding more assets and so much more.
I also want to update that we were recently approached by several existing investors who have shown an interest in buying more shares in eToro. As a business which continues to demonstrate sustainable, profitable growth we are considered an attractive investment opportunity by many investors. [Please note this is not financial advice!] This secondary transaction will give existing shareholders in eToro and veteran employees who have vested options the opportunity to sell a proportion of their shares to these purchasers. This is not a primary i.e. eToro is not raising money – rather it is a moment for some long standing shareholders and employees to take some liquidity. As always, please maintain confidentiality and do not share any details of this potential transaction with anyone. Employees with eligible options will receive an email with further details.
For those of you taking a well-earned break in August, enjoy your vacation and I hope you come back refreshed and energized for an exciting second half of the year.
Best,
Yoni
Jared Isaacman, U.S. President Donald Trump’s nominee to be administrator of the National Aeronautics and Space Administration (NASA) testifies during a Senate Commerce, Science, and Transportation confirmation hearing on Capitol Hill in Washington, D.C., U.S., April 9, 2025.
Ken Cedeno | Reuters
President Donald Trump has renominated Jared Isaacman to run NASA after pulling his prior nomination months ago due to what the president called a “thorough review of prior associations.”
“Jared’s passion for Space, astronaut experience, and dedication to pushing the boundaries of exploration, unlocking the mysteries of the universe, and advancing the new Space economy, make him ideally suited to lead NASA into a bold new Era,” Trump wrote in a post on Truth Social on Tuesday.
Isaacman, who is friends with Tesla CEO Elon Musk, was originally picked to lead NASA in December, before Trump had even taken office. Isaacman is a billionaire who founded payments company Shift4 and has led two private spaceflights.
But Trump pulled the nomination in late May after a spat between the president and Musk, who had been leading a White House effort to slash the size of the federal government. Trump said at the time that he was withdrawing the pick because of Isaacman’s past associations, though he didn’t specify what those were. Some reports have suggested that it was a reference to Isaacman’s prior donations to Democrats.
Days after the withdrawal, Isaacman told Shift4 investors in a letter that his “brief stint in politics was a thrilling experience.” He also said that he was resigning as CEO of Shift4, which he founded in 1999 at age 16, and would assume the role of executive chairman. He had been planning to leave the company if his nomination was confirmed by the Senate. But it never got that far.
Transportation Secretary Sean Duffy has been running NASA as interim head since July.
Isaacman still must go through the Senate confirmation process. The federal government has been shut down since the beginning of October, but the Senate is still able to confirm presidential nominees.
Charles Liang, CEO of Super Micro Computer Inc., during the Computex conference in Taipei, Taiwan, on June 5, 2024.
Annabelle Chih | Bloomberg | Getty Images
Super Micro Computer shares plunged as much as 10% in extended trading on Tuesday after the server maker issued weaker-than-expected results for the fiscal first quarter.
Here’s how the company did in comparison with analyst estimates compiled by LSEG:
- Earnings per share: 35 cents adjusted vs. 40 cents expected
- Revenue: $5.02 billion vs. $6 billion expected
Revenue fell 15% from $5.94 billion a year ago, Super Micro said in a statement. The report comes about two weeks after Super Micro issued preliminary earnings and said it expected revenue of $5 billion for the quarter, down from prior guidance of $6 billion to $7 billion.
Net income fell by more than half to $168.3 million, or 26 cents a share, from $424.3 million, or 67 cents a share, a year earlier.
In its partial report last month, Super Micro said “design win upgrades” pushed some expected first-quarter revenue to the second quarter. The company said it now expects sales of $10 billion to $11 billion in the current quarter, above the $7.83 billion average estimate, according to LSEG.
Super Micro has been a big beneficiary of the artificial intelligence boom, as its servers come packed with graphics processing units from Nvidia. But after growth soared from late 2023 through last year, the business has flatlined, with some analysts saying that Dell has taken market share.
Prior to Tuesday’s report, the stock was up 55% for the year.
AMD CEO Lisa Su speaks at a Senate Commerce, Science, and Transportation Committee hearing in Washington on May 8, 2025. The leaders of some of the biggest technology and artificial intelligence companies will go to Congress on Thursday with a wish list of sorts that at its top has doing away with regulation they say inhibits their firms’ growth and by default, sends business to China.
Nathan Howard | Bloomberg | Getty Images
Advanced Micro Devices reported fiscal third-quarter results that exceeded Wall Street expectations, but gave margin guidance was inline with estimates. The stock slipped in extended trading.
Here’s how the company did in comparison with LSEG consensus:
- Earnings per share: $1.20 adjusted vs. $1.16 expected
- Revenue: $9.25 billion vs. $8.74 billion expected
Revenue increased 36% from a year earlier in the fiscal third quarter, which ended on Sept. 27, according to a statement.
Net income climbed to $1.24 billion, or 75 cents per share, from $771 million, or 47 cents per share, a year earlier.
For the fourth quarter, AMD expects about $9.6 billion in revenue, implying 25% growth. That’s above LSEG’s $9.15 billion consensus. AMD sees an adjusted gross margin of 54.5% for the quarter, meeting StreetAccount’s consensus of 54.5%.
AMD, which is trying to keep pace with Nvidia in the market for artificial intelligence processors, said the guidance does not include revenue from shipments of its Instinct MI308 chips to China. Executives said the same thing last quarter.
As of Tuesday’s close, AMD shares were up 107% so far this year, while the Nasdaq is up 21%.
AMD reached a deal with OpenAI last month that could see the AI startup company take a 10% stake in the chipmaker. OpenAI will deploy 6 gigawatts of AMD’s Instinct graphics processing units over multiple years and across multiple generations of hardware, the companies said, beginning with an initial 1-gigawatt rollout of chips in the second half of next year.
For years OpenAI and other companies relied on graphics chips from Nvidia for running large-scale AI models.
Also in October, Oracle announced plans to deploy 50,000 AMD Instinct MI450 AI chips in its cloud starting next year.
AMD’s data center business, which includes standard central processing units and GPUs for AI, generated $4.34 billion in fiscal third-quarter revenue, up 22%. Analysts polled by StreetAccount were looking for $4.13 billion.
Client revenue reached $2.75 billion, which was up 46% and more than StreetAccount’s $2.61 billion consensus. Revenue from gaming totaled $1.30 billion, up 181%. StreetAccount’s consensus was $1.05 billion.
Amazon, a key cloud customer for AMD, disclosed in a Tuesday filing that it had sold all 822,234 of its AMD shares as of Sept. 30. Amazon built the position sometime in the first quarter.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is developing news. Please check back for updates.
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