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    Is Goldman Sachs' Hold on eToro (ETOR) Reframing Its Competitive Edge in U.S. Brokerage?

    Simply Wall St·01/08/2026 17:26:16
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    • In early January 2026, Goldman Sachs analyst James Yaro downgraded eToro Group’s rating to Hold, reflecting a more cautious view of the online trading platform amid rising competition and potential pricing pressure during its planned U.S. expansion.
    • This shift by a high-profile analyst with a strong recent track record underscores how competitive dynamics in brokerage and crypto-adjacent services are reshaping perceptions of eToro’s business model.
    • With this backdrop of intensifying competition and a more cautious analyst stance, we’ll explore how the downgrade reshapes eToro Group’s investment narrative.

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    What Is eToro Group's Investment Narrative?

    To own eToro Group today, you need to believe in the durability of its social trading ecosystem, its ability to keep users engaged across asset classes, and management’s discipline in capital allocation, including the recently announced US$150,000,000 buyback. Recent results showed rising earnings on high-quality profits, but with slim margins and revenue forecasts pointing to sharp contraction, the story already rested heavily on execution rather than pure growth. Goldman Sachs’ downgrade to Hold and target cut now sharpen that focus: near term, it may not change eToro’s core catalysts around US expansion, CopyTrader adoption, and product innovation, but it does put competitive pressure and pricing risk front and center. The recent share price pullback suggests the market is starting to price in that tougher backdrop.

    However, the biggest concern for investors may be what happens if revenue contracts faster than the business can adapt. Despite retreating, eToro Group's shares might still be trading 23% above their fair value. Discover the potential downside here.

    Exploring Other Perspectives

    ETOR 1-Year Stock Price Chart
    ETOR 1-Year Stock Price Chart
    Twenty Simply Wall St Community fair value estimates for eToro range from almost zero to very large triple‑digit prices, underlining how far apart individual forecasts can be. Set that against the recent analyst downgrade and heightened competitive risk, and you can see why it pays to examine several viewpoints before deciding how eToro’s story might play out.

    Explore 20 other fair value estimates on eToro Group - why the stock might be a potential multi-bagger!

    Build Your Own eToro Group Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your eToro Group research is our analysis highlighting 4 key rewards that could impact your investment decision.
    • Our free eToro Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate eToro Group's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.