Key Takeaways
- • Goldman Sachs cut price targets on eToro (ETOR) to $29 from $34 and Galaxy Digital (GLXY) to $24 from $28, maintaining 'Neutral' ratings on both stocks despite the reductions.
- • Both stocks still trade below Goldman's targets, implying approximately 11% upside for eToro and 9% upside for Galaxy Digital, though both declined during the trading session following the announcement.
- • Goldman identifies a divergence in the crypto recovery: while Bitcoin traded near $83,000 and crypto market capitalizations and trading volumes have stabilized for the first time since Q4 2025, the benefits are not flowing equally to all crypto-linked equities.
- • Crypto revenue estimates are inflecting higher for the first time in nearly a year, according to Goldman's analysis, but Galaxy Digital and eToro are positioned to lag peers in capturing this recovery.
- • Retail sentiment on Stocktwits shifted for both stocks following the cuts—eToro moved from "extremely bullish" to "bullish," while Galaxy Digital moved from "bearish" to "neutral."
Summary
Goldman Sachs issued a cautionary note on two major crypto-exposed equities on Wednesday, reducing price targets on both eToro and Galaxy Digital while maintaining neutral outlooks. The bank cut its eToro target by $5 to $29 and Galaxy Digital's target by $4 to $24, according to reporting from TheFly. Despite the reductions, both stocks retained upside potential relative to their closing prices, with eToro offering 11% upside from Tuesday's $26 close and Galaxy Digital showing 9% upside from its $22 close. The market reacted negatively to the news, with ETOR falling roughly 3% during midday trading and GLXY declining approximately 4%.
Goldman's downgrade reflects a more nuanced view of the current crypto market environment. The bank acknowledged that crypto market conditions have genuinely improved—Bitcoin traded near $83,000, market capitalizations and trading volumes have stabilized, and crypto revenue estimates are now inflecting higher for the first time since the fourth quarter of 2025. However, Goldman's central thesis is that this broad crypto recovery is not benefiting all participants equally. The firm's reasoning suggests that while the crypto ecosystem is strengthening, retail-focused trading platforms like eToro and diversified crypto exposure vehicles like Galaxy Digital face headwinds that will prevent them from fully participating in the upside that pure-play crypto operators may capture.
The divergence highlighted by Goldman underscores a bifurcation in how crypto recovery gains are likely to be distributed across the sector. Pure crypto infrastructure and services firms appear positioned to benefit more directly from higher revenues and trading activity, whereas platforms targeting retail clients and broader crypto investment vehicles face structural challenges. Retail investor sentiment, tracked on Stocktwits, reflected the disappointment: eToro's sentiment retreated from an "extremely bullish" zone to merely "bullish," while Galaxy Digital's sentiment improved from "bearish" to "neutral"—suggesting cautious repositioning rather than confidence in the downgrade targets.
Goldman's downgrade reflects a more nuanced view of the current crypto market environment. The bank acknowledged that crypto market conditions have genuinely improved—Bitcoin traded near $83,000, market capitalizations and trading volumes have stabilized, and crypto revenue estimates are now inflecting higher for the first time since the fourth quarter of 2025. However, Goldman's central thesis is that this broad crypto recovery is not benefiting all participants equally. The firm's reasoning suggests that while the crypto ecosystem is strengthening, retail-focused trading platforms like eToro and diversified crypto exposure vehicles like Galaxy Digital face headwinds that will prevent them from fully participating in the upside that pure-play crypto operators may capture.
The divergence highlighted by Goldman underscores a bifurcation in how crypto recovery gains are likely to be distributed across the sector. Pure crypto infrastructure and services firms appear positioned to benefit more directly from higher revenues and trading activity, whereas platforms targeting retail clients and broader crypto investment vehicles face structural challenges. Retail investor sentiment, tracked on Stocktwits, reflected the disappointment: eToro's sentiment retreated from an "extremely bullish" zone to merely "bullish," while Galaxy Digital's sentiment improved from "bearish" to "neutral"—suggesting cautious repositioning rather than confidence in the downgrade targets.
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