Latest news with #CRCL
Yahoo
2 days ago
- Business
- Yahoo
Jim Cramer on Circle Internet: 'This Company Has a Bright Future'
Circle Internet Group (NYSE:CRCL) is one of the 14 stocks Jim Cramer recently shared insights on. Coming to the company during the episode, Cramer said: 'Finally, there's Circle Internet Group. Again, I have conviction that this company has a bright future in the red-hot Stablecoin market. But I care about the stock price, not just the company. Less than three weeks ago, Circle Internet came public at $31. It's now at $222 and change, and that's after a 15% decline today. You may think you've made a fortune in this one. However, you've made nothing until you ring the register. I'm not questioning your conviction, I'm questioning your sanity. How can you not at least take your cost basis out? You can let the rest run. That way, you're playing with the house's money. That's the ideal place to be because you'll never lose.' A professional investor in a bespoke suit calmly analysing a stock exchange chart. Circle Internet (NYSE:CRCL) offers infrastructure for stablecoin and blockchain-based financial applications. Its platform supports tokenized funds, payment solutions, liquidity services, and tools for developers. While we acknowledge the potential of CRCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
IPO Market: Why 2025 is Poised for a Resurgence After Years of Stagnation
After reaching a peak in 2021, the initial public offering (IPO) market has been stagnant. In 2020, the number of IPOs was 480, and in 2021, the number of new offerings exploded to 1035. The reason behind the explosion in new stock offerings was due to an 'animal spirit' market environment spurred on by basement-level interest rates, government stimulus checks, and robust market performance. Meanwhile, many companies went public in the second half of 2020 and early 2021, having delayed their IPOs due to macroeconomic concerns caused by the pandemic. In addition, the stay-at-home trend led to the rapid growth of digital and online businesses like telehealth, cybersecurity, e-commerce, and streaming services, prompting management teams to take them public. The rise of SPACs (Special Purpose Acquisition Companies), also known as 'blank check companies,' helped to increase the IPO count and Wall Street's speculative, risk-on fervor. SPACs utilize the IPO process as a means to raise capital for the acquisition of a private company. During the immediate post-COVID timeframe, the number of SPACs doubled, and their share prices increased rapidly (at first) as well. However, with little fundamentals, sky-high valuations, and speculative retail investments, the IPO SPAC bubble eventually burst. The poor performance after the initial SPAC jolt likely set the IPO market back for years. With higher inflation in 2022 came higher interest rates and a more challenging path to going public. In addition, macro concerns and a tighter regulatory environment meant that more companies remained private. From the peak of 1,035 IPOs in 2021, the number of IPOs in 2021 was 181, 154 in 2023, and 225 last year. Year-to-date, there have been 161 IPOs in the United States. Should the current trend continue, 2025 will mark the most robust IPO market since 2021. What's behind the rebirth of the IPO market? · Innovations Lead to Hyper-Growth Industries: Industries such as artificial intelligence and digital assets have transitioned from pipedream to reality in 2025, amid rampant adoption and investment. · Regulatory Thawing: The Trump administration is seen by Wall Street as more favorable from a regulatory perspective. For example, the administration is backing 'The GENIUS Act,' finally providing a regulatory framework and clarity for the stablecoin business. · The IPO Domino Effect: Often,management teams will wait to see how other companies do before going public. Because companies like Coreweave (CRWV) and Circle Group (CRCL) have experienced so much price appreciation since going public, other companies are more likely to follow suit and pull the trigger. Image Source: Zacks Investment Research Though many 2025 IPOs have been successful, not all have been. For instance, Newsmax (NMAX), a right-leaning media company, shot from $15 to $265 before completely roundtripping the gains. IPOs are the lifeblood of the stock market, and when the market is healthy, they can provide investors with investment opportunities in hyper-growth market areas such as fintech, digital assets and artificial intelligence. Two stocks to watch in the digital assets and fintech space are Cantor Equity Partners (CEP) and Chime Financial (CHYM). CEP is a SPAC used to acquire Bitcoin, and Chime provides a mobile-first banking solution. In addition, financial infrastructure platform Stripe is rumored to be considering an IPO in 2025. Here are some other potential IPOs rumored to be going public this year: Klarna: A leader in the 'buy now, pay later' space. Discord: A popular chat and communication platform. StubHub: The leading ticket resale marketplace. Bottom Line After a multi-year drought, the US IPO market is reborn in 2025. More companies are going public and performing well, offering fruitful opportunities for growth-oriented investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Bullish flow in Circle Star Energy Corp with shares up 10.85%
Bullish flow in Circle Star Energy Corp (CRCL), with shares up $21.55, or 10.85%, near $220.17. Options volume more than double the daily average with 297k contracts traded and calls leading puts for a put/call ratio of 0.74, compared to a typical level near 1.22. Implied volatility (IV30) is higher by 1.8 points near 137.56,and above the 52wk median, suggesting an expected daily move of $19.08. Put-call skew flattened, suggesting a modestly bullish tone. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on CRCL: Disclaimer & DisclosureReport an Issue Circle Internet Stock (CRCL) Could Face Pressure. Risk Factors to Watch Circle Internet Group (CRCL) Taps Into Stablecoin Boom Amid Frothy Valuation Morning News Wrap-Up: Wednesday's Biggest Stock Market Stories! Why Is Circle Stock Dropping After Its Monster Rally? 'Hold for Now,' Says Analyst about Circle Stock (CRCL) Despite Stablecoin Strength Sign in to access your portfolio
Business Insider
3 days ago
- Business
- Business Insider
Circle Internet Stock (CRCL) Could Face Pressure. Risk Factors to Watch
Circle Internet (CRCL) stock declined about 11% on Wednesday after plunging 15.5% the previous day. The decline came as some analysts flagged the stock's lofty valuation and the Bank for International Settlements (BIS) highlighted some risks related to stablecoins. Notably, Circle Internet, an issuer of the USDC stablecoin, has seen its stock rally by 541% to $198.62 from its initial public offering (IPO) price of $31. Confident Investing Starts Here: The passage of the proposed stablecoin legislation, the GENIUS Act, by the Senate helped fuel investor optimism about the crypto stock. Let's look at the risks that have been recently highlighted. CRCL Stock Faces These Risks While the BIS report spoke positively about tokenization and the digitalization of money, it highlighted some shortcomings of stablecoins. BIS thinks that stablecoins 'fall short of requirements to be the mainstay of the monetary system when set against the three key tests of singleness, elasticity, and integrity.' It added that without adequate regulation, stablecoins could present risks to financial stability and monetary sovereignty. BIS also believes that these tokens cannot assure one-to-one parity with central bank money. They may also struggle due to liquidity issues and the lack of ability to prevent financial crimes. These risks, discussed by BIS, could weigh on investor sentiment. Additionally, experts have noted Circle Internet's high dependence on interest income, which could fall if interest rates are lowered. Further, the company owes 50% of its revenue from interest earnings on USDC reserves to crypto exchange Coinbase Global (COIN). Meanwhile, Wall Street analysts acknowledge Circle Internet's position as a dominant issuer of regulated stablecoins, which is well-positioned to benefit from increased adoption of stablecoins amid a favorable regulatory framework. However, they are concerned about CRCL stock's steep valuation. For instance, Compass Point analyst Ed Engel, who recently initiated coverage of Circle stock with a Hold rating and a price target of $205, argues that it is tough to justify a higher valuation, as optimistic long-term assumptions are already priced into the stock. Analysts have also noted the threat of rising competition from banks and fintechs, especially after there is more clarity on the regulatory front. Is CRCL Stock a Buy, Sell, or Hold? Overall, Wall Street is cautiously optimistic on Circle Internet Group stock, with a Moderate Buy consensus rating based on two Holds and one Buy rating. The average CRCL stock price target of $213.33 indicates 7.4% upside potential from current levels.
Yahoo
3 days ago
- Business
- Yahoo
Why Circle Internet Stock Is Plummeting Today
The company's stock is up more than 144% since its IPO earlier this month. One of the world's oldest international financial organizations issued a report critical of stablecoins. 10 stocks we like better than Circle Internet Group › Shares of Circle Internet Group (NYSE: CRCL) are falling today, down 9.1% as of 2:57 p.m. ET. The drop comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) were relatively flat. The company, which IPO'd earlier this month, is the sole issuer of USDC, one of the most popular stablecoins on the market. Circle stock's recent massive run-up was tempered after a report critical of stablecoins was released from an international banking organization. The Bank for International Settlements (BIS), owned by 63 central banks from around the world, issued a report yesterday that questioned the supremacy of stablecoins as the digital answer for the modern economy. The report was encouraging of the use of "tokenization" and the digitalization of money, but said that stablecoins fall short in important ways. According to the report, "stablecoins offer some promise on tokenization, but fall short of requirements to be the mainstay of the monetary system when set against the three key tests of singleness, elasticity, and integrity." With a market cap of nearly $60 billion and sales last year of $1.7 billion, there is a lot of growth priced in already for Circle stock, and there are some key issues investors should be aware of. One, the company's revenue is directly tied to interest rates, which are currently elevated. As the Federal Reserve cuts rates, which they are expected to do later this year, the company's bottom line will be hit by as much as 10% for each 0.25% cut. Two, a significant chunk -- roughly 50% -- of Circle's revenue is owed to Coinbase as part of the two companies' relationship. That percentage can change based on how much USDC Coinbase holds on its exchange. That means Circle's fate is directly tied to decisions made at another company. I would hold off on Circle stock. Before you buy stock in Circle Internet Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Circle Internet Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy. Why Circle Internet Stock Is Plummeting Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
