As the global financial system turns to a more digital environment, cryptocurrency stablecoin issuer Circle Internet Group seems to have found its niche. Circle Internet stock is a new issue that has seen some wild action in heavy trading since its debut in early June.
The IBD 50 stock started trading on June 5, with an initial offer price of 31 per share. The fintech stock is pulling back for its second straight day and giving back some of Monday's 9.9% gain, but has climbed around 28% from its July 1 low.
Circle Internet Group provides a global money transport network for digital currencies and blockchains used for payments, commerce, and financial applications worldwide.
It boasts it is building the world's largest, most-widely used stablecoin network through its regulated USDC and EURC stablecoins. Its USDC is redeemable one-for-one for U.S. dollars.
It owns money transmitter licenses in 46 states, the District of Columbia and Puerto Rico. It also operates in the European Union, the U.K., Singapore, the United Arab Emirates, Bermuda, Canada and Japan.
The IBD Leaderboard watchlist name ranks No. 3 out of 74 stocks in the Financial Services-Specialty group, which holds the 26th spot out of the 197 industry groups that Investor's Business Daily tracks.
Cathie Wood's ARK Funds Own Circle Internet
Famed investor and chief investment officer of ARK Invest Cathie Wood bought shares of the stablecoin issuer on its first day of trading. Currently, ARK's flagship exchange traded fund, ARK Innovation ETF, has 5.13% of the fund in Circle Internet shares, for a current market value of around $349.7 million.
Its ARK Fintech Innovation ETF holds 6.27% of the fund in Circle Internet stock, for a market value of around $75.6 million. Moreover, it ARK Next Generation Internet ETF has 6.12% of the fund in Circle for a value around $129.9 million.
Circle Internet management also owns 3% of shares.
The IBD 50 Growth Stocks To Watch name is not a favorite of all following the stock. On Tuesday, Dan Dolev of Mizuho Securities issued an underperform rating with an 85 price target. With Circle Internet stock currently trading at just over 200 per share, that reflects a nearly 58% drop.
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Circle Internet Group Claws Back
Demand for the stock has been high since its debut, as reflected in its 2.3 up/down volume ratio, according to MarketSurge data analysis.
Its volume surged to over 99 million shares traded when the stock hit nearly 300 on June 23. The stock retraced from the high the same day, and plunged 24.9% that week.
Shares have not yet formed an official IPO Base. But its explosive move higher earned it a best-possible 99 IBD Relative Strength Rating in its short time as a publicly traded stock.
Circle Revenue Climbs
The stablecoin issuer turned profitable in 2023, with earnings per share of $1.21, followed by 70 cents per share in full year 2024.
Its first quarter earnings grew 32% on 58% sales growth. Analysts call for second quarter profit of 34 cents per share. Wall Street forecasts also see second-quarter revenue of $644.7 million, then ramping up to $709.8 million over the next four quarters.
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