Reaching A Favorable Inflection - Thoughts Post Sell-Side Lunch; $52 Target

Research evidence excerpt

Reaching A Favorable Inflection - Thoughts Post Sell-Side Lunch; $52 Target

e 5/12), the deployment of agentic

AI sparked 500K trades in April (or ~80 bps of the monthly volume), with volumes rising 50%

week on week despite a relatively narrow product launch. We see room for significant pick-

up in the velocity of trading as agentic AI capabilities broaden across stock selection, risk

management, portfolio management and institutionalized research, while the nascent but

growing App Store should deepen client connectivity, enhance networking impact and drive

up client retention. The revenue capture is moderately below the existing RPC, but we think the

outcome is accretive to ECC net contribution.

Accelerating AI Adoption & Use Cases

2026 Is Likely "Year of the Agent" For ETOR

We see multiple vectors of agentic AI deployment/connectivity for ETOR unfolding. Specifically,

AI capabilities and use cases for ETOR's clients are accelerating, with management focused on

increasing retail investing & trading sophistication. Here,

1) ETOR's AI model, Tori, is increasingly being integrated w/ xAI's Grok - management selected

Grok as the strongest "market oriented" AI model;

2) ETOR's API's are built "Agent 1st", prioritizing easy connectivity w/ AI agents from common

models (OpenAI, Claude, Cursor) versus the higher level resources or engineering capabilities

that might be required for connection & use w/ competitor APIs, which;

3) Allows for relatively simple creation of AI applications - AI agents are directed to learn a

"skill", understand a protocol, market, or fundamental concept, then execute the strategy:

"allocate to high dividend yielding stocks with positive earnings revisions" or "arbitrage similar

outcome bets on Kalshi & Polymarket's prediction markets", for example.