Circle (CRCL) stock opened some 15% up on Tuesday morning after the stablecoin issuer reported an exciting 53% year-over-year increase in revenue to $658 million in its fiscal Q2.
However, the firm swung to $482 million of net loss or $4.48 a share, notably worse than $32.9 million of earnings in the same quarter last year.
Still, CRCL shares are pushing to the upside as investors continue to focus more on top-line growth. Versus its initial public offering (IPO) price, the crypto stock is currently up some 420%.
Is Q2 Loss a Threat for Circle Stock?
While nearly $500 million of quarterly loss does look alarming on the surface, much of it was in fact related to IPO-related charges.
Simply put, it only reflects accounting adjustments, not operational losses, or structural headwinds facing Circle shares. So, bottom-line weakness will likely prove a one-time event for the Nasdaq-listed firm.
CRCL stock may be worth buying on the post-earnings decline also because the fintech firm sees the amount of USDC in circulation growing at a compound annualized rate of 40% going forward.
Note that the crypto stock is priced attractively at writing as well after losing more than 45% from its post-IPO highs.
How High Could CRCL Shares Fly in 2025?
Circle’s strong earnings feed right into the bullish view that Gautam Chhugani, a senior Bernstein analyst, shared with clients in his latest research note.
Ahead of the company’s quarterly release, Chhugani maintained his $230 price target on CRCL stock, saying it’s a “must-hold” for investors seeking exposure to the expected long-term growth in tokenized finance and stablecoin adoption.
According to Bernstein, the stablecoin market will grow from roughly $225 billion today to about $4 trillion over the next decade.
Its $230 price target on Circle shares indicates potential upside of another 35% from current levels.
Wall Street’s View on Circle Internet Group
Investors could also take heart in the fact that other Wall Street firms also forecast at least a little more upside in Circle stock.
While the consensus rating on CRCL shares currently sits at “Hold” only, the mean target of about $184 suggests potential for a 12% rally from here.
