By Manya Saini

(Reuters) -Stock and crypto trading platform eToro beat Wall Street views for profit in the second quarter on Tuesday, as retail investors continued to pile into markets.

Retail trading activity has been strong this year, buoyed by gains in U.S. equity markets and renewed interest in high-risk assets such as cryptocurrencies and tech stocks.

Analysts say volatility from geopolitical tensions and shifting trade policies has done little to deter individual investors, who have been quick to capitalize on market swings and look for opportunities to "buy the dip".

Chief Financial Officer Meron Shani told analysts that, as with the overall market, trading activity on the platform picked up after the tariff announcement in April, with investor demand also broadly higher.

The numbers normalized by the end of the second quarter and have remained stable in July, he added.

Net contribution, which deducts the cost of revenue from cryptoassets and margin interest expense, jumped 26% to $210 million from the year-ago quarter.

New-age fintech platforms have eroded established Wall Street firms by luring younger, tech-savvy investors. Easy-to-use apps, market volatility and a steady news flow have also kept retail engagement high.

eToro's assets under administration (AUA) grew 54% to $17.5 billion in the quarter.

"During the quarter, eToro continued to develop its offering, launching key products," analysts at Jefferies said in a note, adding that growth in AUA was driven by market gains in equities and crypto, alongside strong customer inflows.

The company went public in May in a bumper U.S. initial public offering, with its shares surging on debut after pricing above the marketed range.

eToro posted an adjusted profit of 56 cents per share in the three months ended June 30, beating estimates of 50 cents, according to estimates compiled by LSEG.

Shares were last down 1.7% in volatile trading, reversing premarket gains.

(Reporting by Manya Saini in Bengaluru; Editing by Vijay Kishore)