eToro Launches AI Platform Upgrades Amid Crypto Dependency Concerns

What happened

eToro unveiled a suite of AI-powered updates including the Tori AI agent, a rebuilt mobile app, a desktop platform, an Apple Watch app, and an app marketplace, aiming to deepen user engagement and differentiate its social trading offering. While these product enhancements signal continued investment in user experience, they do not alter eToro's fundamental reliance on crypto trading, which accounted for over 90% of Q2 2025 revenue. The DeepValue report maintains a WAIT rating, citing November 2025 data showing crypto trade counts and ticket sizes halving year-over-year despite growing funded accounts. With a base-case valuation of $38 per share versus the current ~$32, the risk/reward remains skewed toward downside in a bear scenario ($22) unless crypto activity re-accelerates. The AI push may improve engagement but is unlikely to materially shift the revenue mix in the near term, leaving the stock exposed to crypto market cycles.

Implication

The AI and platform upgrades could over time increase non-crypto trading and user stickiness, but investors should monitor for tangible revenue diversification before getting more constructive. Until crypto volumes stabilize or non-crypto income scales meaningfully, the stock remains a high-beta play on retail crypto sentiment, best entered near the $28 attractive entry identified in the DeepValue report.

Thesis delta

The news does not change the fundamental investment thesis; eToro still needs to demonstrate reduced reliance on crypto revenue to justify a higher valuation. The product announcements are incremental but not transformative given the scale of the revenue gap. Confidence remains moderate as the updates could modestly boost engagement but lack evidence of revenue mix shift.