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Cathie Wood's ARK Investment buys 335K shares of 10x Genomics today

Cathie Wood's ARK Investment buys 335K shares of 10x Genomics today

21:03 EDT Cathie Wood's ARK Investment buys 335K shares of 10x Genomics (TXG) today
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Stablecoin issuer Circle prices IPO at $31 per share, above expected range, ahead of NYSE debut
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Stablecoin issuer Circle prices IPO at $31 per share, above expected range, ahead of NYSE debut

Circle Internet Group, the issuer of one of the world's biggest stablecoins, priced its initial public offering at $31 per share late Wednesday, above the expected range of $27-28 and giving the company a total market value of $6.8 billion. New York-based Circle, its founder and some original shareholders will raise $1.05 billion in the offering of 34 million shares. In a measure of enormous demand for the crypto company, Circle increased the number of shares sold in the IPO from 32 million after the market closed Wednesday. Originally, Circle had sought to raise just $624 million by selling 24 million shares in a range of $24 to $26 per share. Circle granted its underwriters, led by JPMorgan, Citigroup and Goldman Sachs, a 30-day option to sell an additional 5.1 million shares. Circle stock will trade on the New York Stock Exchange under ticker symbol CRCL. Cathie Wood's ARK Investment Management has indicated interest in purchasing up to $150 million of the shares, according to a Securities and Exchange Commission filing. Circle, led by CEO Jeremy Allaire, is one of the earliest companies in the crypto industry and the issuer of USD Coin, commonly referred to by its ticker, USDC. It's the second largest stablecoin in the world, comprising 27% of the market, behind Tether's USDT, which dominates 67% of the stablecoin market. Headquartered in Boston until early this year, Circle earned $156 million in net income in 2024 on $1.68 billion in revenue and reserve income, down from income of $268 million on $1.45 billion in revenue in 2023. The tech IPO market has shown signs of life this quarter after an extended drought dating back to early 2022. Investors are watching new offerings as tests of the market's readiness for new offerings. Brokerage platform eToro filed in March to go public this year, joining Klarna and Stubhub. At the time, IPOs looked set to benefit from President Trump's return to the White House, but all three companies ended up shelving those initial plans as tariff developments soon rocked the capital markets. Since finally debuting last month, EToro is up 25%, while shares of artificial intelligence infrastructure provider CoreWeave have more than doubled since the company's March IPO. In the past month, digital health company Omada Health and fintech company Chime have also filed to go public. Circle will become one of the most prominent pure play crypto companies to list in the U.S. Unlike eToro, Robinhood, Block, or even Strategy, Circle's entire business is stablecoins – cryptocurrencies that are backed by another asset, usually the dollar. The tokens are designed to bring the stability of traditional currencies to blockchain networks, whose speed and efficiency in transferring money has become attractive to global financial institutions. Stablecoins are also widely regarded as crypto's killer app. Historically, Stablecoins' main function was in trading but now companies that are outside the traditional crypto universe are eyeing what JMP Citizens calls a post regulatory land grab that could see exponential growth to $3 trillion in the next five years. Stablecoin momentum is exploding this year, thanks to new interest from banks and payment firms as the Trump administration rolls back restrictive Biden-era crypto policies and Congress makes progress on passing stablecoin legislation, possibly as early as August. Circle's USDC coin is likely to be favored by institutions largely because of Circle's emphasis on regulatory compliance. The company was the first to receive a New York State BitLicense, which is famously difficult to obtain, in 2015. As banks, payments companies and financial technology firms eye a move into stablecoins, that commitment to compliance may serve as an advantage for Circle.

Stablecoin issuer Circle prices IPO at $31, above expected range, ahead of NYSE debut
Stablecoin issuer Circle prices IPO at $31, above expected range, ahead of NYSE debut

CNBC

time3 hours ago

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Stablecoin issuer Circle prices IPO at $31, above expected range, ahead of NYSE debut

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After a rocky couple of years, Ulta Beauty (ULTA) is staging a fierce comeback, with its stock surging and its investment case looking increasingly better by the quarter. Evidently, the company's Q1 results posted just last week lit a spark under the stock, showcasing robust comparable sales growth, strategic wins, and an aggressive share buyback program. 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 Despite its recent rally, I believe Ulta Beauty still offers attractive value, making it a compelling choice for long-term investors. Here's why I remain bullish on the stock. Walking into an Ulta store these days feels like stepping into a bustling beauty bazaar, and the numbers certainly back up that vibe. In Q1, Ulta reported a 2.9% increase in comparable sales, blowing past Wall Street's modest expectations of just 0.2% growth. This uptick, driven by a 2.3% rise in average ticket size and a 0.6% increase in transactions, shows Ulta is pulling customers back in a big way, even in the face of the brutal competition facing the beauty industry these days. Under new CEO Kecia Steelman, the company's 'Ulta Beauty Unleashed' plan is resonating, with fresh promotions and a beefed-up loyalty program, now boasting a record 44.6 million members and keeping shoppers hooked. One could argue that this is a one-quarter fluke. However, Ulta's focus on exclusive products and in-store experiences, like their expanded Target shop-in-shops, is undeniably driving traffic. There is no reason to think that this trend will fade soon, especially since Ulta is coming off some difficult quarters (hence the stock's underperformance in 2024), and the recent numbers indicate that a proper rebound has now been established. To be frank, the company's ability to outpace estimates in such a tough retail environment (particularly competition-wise) signals a consumer base that's still willing to splurge on beauty, even during a period of economic uncertainty. One of the more interesting takeaways from Ulta's report is that the company isn't solely relying on its core business to drive growth, but is instead exploring new opportunities. During the earnings call, executives talked about plans to expand into Mexico and the Middle East this year. They've already opened six new stores this quarter, bringing their total to 1,451, after adding 100 Ulta Beauty stores at Target locations last year. Interestingly, these moves don't necessarily seem to be about expanding square footage (as is the case with retailers), but rather about making Ulta a go-to destination for beauty lovers everywhere. Then there's the loyalty program, which grew 3% last year to the 44.6 million mark. It's a sticky ecosystem that keeps customers coming back, and Ulta is doubling down with digital upgrades and personalized marketing. When you pair these efforts with exclusive brand launches, you can see how Ulta can claw back market share from competitors like Sephora and Amazon, even as those giants loom large. Ulta has a tremendous track record of share repurchases. It has essentially been using the majority of its free cash flow over the years to repurchase as many shares as possible. For context, over the past decade, Ulta has reduced its share count by 30%. In Q1, this trend endured, with Ulta repurchasing $249.5 million worth of stock. With $2.7 billion still available under their $3 billion program, Ulta is signaling confidence in its future and the stock's present valuation. I love seeing a company bet on itself like this. Management is like they're saying, 'We know we're undervalued, and we're not afraid to prove it.' Regarding Ulta's valuation, even after the stock's post-earnings rebound, it's still trading at just 20x this year's expected EPS. Considering that sales are on the rebound, margins are stabilizing, and buybacks are continually reducing the share count, EPS growth is expected to pick up in the coming years. In fact, repurchasing shares at today's valuation is likely to prove exceptionally accretive in the long term. Therefore, I believe that the current multiple undervalues Ulta's medium-term prospects. Despite the stock's recent rebound, Wall Street remains optimistic about Ulta. The stock still features a Moderate Buy consensus rating, with 12 analysts currently bullish, 12 neutral, and just one bearish. Now, Ulta's average stock forecast of $470.04 indicates marginal downside potential over the coming twelve months. Ulta Beauty appears to be regaining its momentum. The company delivered strong comparable sales, executed key strategic initiatives, and continues to return value to shareholders through a robust buyback program. Trading at roughly 20 times earnings, Ulta offers a compelling blend of value and growth—an uncommon combination in the often-volatile retail sector. With a meaningful margin of safety and solid upside potential, the stock presents a highly attractive investment opportunity at current levels. Disclaimer & DisclosureReport an Issue 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

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