ETOR
A vote of confidence with a crypto twist
Cantor Fitzgerald isn’t changing its tune on eToro. The firm reiterated an Overweight rating and held its $52 price target after eToro’s acquisition of Zengo, a self-custodial crypto wallet provider.
For investors, that’s basically Cantor saying: nice move, keep going. The market has already started to price in some optimism too, with eToro stock up more than 15% over the past week.
Why Zengo matters
This isn’t just “another acquisition” in the always-chaotic crypto universe. Zengo sits in the wallet/security side of the business, which could help eToro deepen its crypto offering and make the platform stickier for users who want to trade and store digital assets in one place.
That matters because in fintech, retention is the whole game. It’s not enough to get someone to sign up; you want them hanging around like the friend who somehow turns one quick drink into a three-hour hangout.
The stock still has baggage
Even with the recent pop, eToro is still down about 45% over the past year. So yes, the market is cheering — but it’s cheering from a very low starting point.
What investors will want to watch next:
- whether Zengo actually strengthens eToro’s crypto moat
- whether the acquisition adds users or just adds a press release
- whether analysts start treating eToro like a more durable platform, not just a trading app with momentum
Big picture: Cantor’s call says eToro may be building something bigger than a brokerage app. If the Zengo deal helps it become a more complete crypto platform, this stock could have more room to run than the yearlong chart would suggest.