Over the past five months, eToro, the well-known online trading platform, has significantly reduced its valuation, which now stands at $1.7 billion. In recent smaller secondary transactions, eToro shares are being made available for $60 per share, marking a decline of approximately 35% to 40% compared to the previous secondary deal just a month prior.

This downward trend in eToro's valuation is a notable shift from its Wall Street IPO two years ago, when the company aimed for a substantially higher valuation. In late July, eToro conducted a share sale, leading to the firm's valuation plummeting to $2.5 billion, only a quarter of its IPO goal.

As part of this sale, eToro permitted current and former employees and early investors to sell approximately $120 million of shares to some of the broker's existing investors. Recent reports indicate that two of the company's largest shareholders have purchased eToro shares, increasing their ownership stakes.

It's essential to note that the Israeli company is not directly involved in selling these shares and will not issue any new shares or receive any proceeds from this transaction. A representative from eToro has confirmed that all share transactions are officially recorded in the company's registry. No information is available regarding additional transactions beyond the one announced in July. This development underscores the dynamic nature of valuation in financial markets, with eToro navigating through these changes.