eToro: Robinhood 2.0?

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History shows that most of the massive fortunes created in the past century came from what seems like a simple model: intermediation.

• Amazon doesn't produce any goods itself, but is present in nearly every retail transaction in the US.

• Visa, Mastercard, American Express don't lend money, but take fees from nearly every credit transaction worldwide.

• Uber doesn't own cars, Airbnb has no hotels, Booking doesn't need to invest in any resorts.

All these businesses do one thing: Connect those with demand to those with supply. And they are rich because of it.

When a market has one concentrated side (few producers) and one dispersed side (millions of consumers), intermediaries become the indispensable piece for the efficient flow of goods and services.

The Internet has elevated this intermediary role to new heights.

In the past, a supermarket took decades to expand nationwide. Now, Amazon took just a few years to capture over 40% of the US e-commerce market share – thanks to global reach from day one.

→ Fragmented markets quickly consolidate around the strongest names. And intermediaries become the bosses.

However, not every industry consolidates as easily.

The financial industry is an example. After the internet wave, instead of consolidating into a few giants, the financial market saw an explosion of small fintechs – from neobanks to personal investment platforms.

• Even without creating monopolies like Amazon or Airbnb, these fintech platforms still grow strongly, generating billions of USD in revenue in just a few years – even if each company's market share is still under 1%.

This leads to an interesting truth: in fragmented industries, the opportunity is not in picking the 'final winner', but in investing early – when a new company starts its journey to capture market share in a very large pie.

eToro – an online financial brokerage platform that has just listed – could be just such an opportunity. As a 'digital intermediary' operating in a yet-to-consolidate market, eToro gathers many factors that long-term investors should pay attention to.

In today's article, Viet Hustler will analyze eToro from multiple angles:

1. Overview of eToro

   • Leadership Team

   • Development Journey

2. eToro's Business Model

   • Core Products and Technology Platform

3. Competitive Advantage Analysis

4. Financial Health Analysis

5. Future Prospects

6. Preliminary Valuation