Trading platform eToro beats profit estimates on growth across asset classes

Core Insights - eToro exceeded profit estimates for Q4, driven by growth across various asset classes, with shares rising approximately 8.9% pre-market [1] - The company's assets under administration increased by 11% year-on-year to $18.5 billion, indicating strong performance in its multi-asset business model [1] - Despite the positive overall results, net contribution fell by 10% to $227 million, reflecting challenges in the crypto market [1] Financial Performance - eToro reported an adjusted profit of 71 cents per share for the three months ending December 31, surpassing analysts' average estimate of 63 cents per share [1] - The growth in U.S. equity markets during the quarter was supported by interest-rate cuts, although crypto market volatility raised caution among investors [1] Market Context - The emergence of new fintech firms is challenging traditional Wall Street institutions by attracting younger investors with lower trading costs and user-friendly platforms [1] - Concerns about a potential bubble in the market have arisen due to high valuations in select AI-linked stocks [1]