Latest news with #CRCL
Yahoo
14 hours ago
- Business
- Yahoo
Circle Internet Group stock falls after first downgrade
-- Circle Internet Group (NYSE:CRCL) stock declined over 3% Tuesday after receiving its first downgrade since its June IPO, with shares that initially priced at $31 now trading above $200. Compass Point analyst Ed Engel downgraded CRCL from Neutral to Sell with a price target of $130, down from $205, citing concerns about the company's long-term economics relative to its $53 billion valuation. The downgrade comes after U.S. stablecoin legislation passed last week. "We still believe USDC can be an integral part of the financial system; however, we're more cautious towards CRCL's long-term economics than its $53bn valuation implies," Engel wrote in his note to investors. The analyst expects Circle to expand its distribution network in coming months while sharing a greater percentage of interest income. He also anticipates traditional banks and fintech companies will announce competing stablecoin products in the second half of 2025, potentially pressuring CRCL's premium valuation. According to Engel, CRCL's current market capitalization implies expectations of approximately 25% market share and 30% EBITDA margins long-term. His reduced price target assumes 15% long-term market share and 20% EBITDA margins, representing a 60x multiple on 2026 estimated EBITDA versus the current 106x. The analyst also pointed to crypto's history of "sell the news" events, suggesting CRCL may retrace some of its recent rally following the GENIUS Act being signed into law on July 18. At least three analysts now rate the stock as a sell, including JP Morgan, which maintains an $80 price target on CRCL. Related articles Circle Internet Group stock falls after first downgrade Clients buying into summer rally, bracing for later pullback, says BofA's Hartnett After soaring 149%, this stock is back in our AI's favor - & already +25% in July 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
14 hours ago
- Business
- Yahoo
Wall Street analyst has a blunt warning on surging stock
Wall Street analyst has a blunt warning on surging stock originally appeared on TheStreet. Circle (CRCL), the public issuer of stablecoin USDC, saw its shares shrink as much as 8% on July 22, after Compass Point downgraded the stock from "Hold" to "Sell," citing valuation concerns and increased competition in the digital asset market. The firm also reduced its price target on Circle to $130, down from $205, which suggested a pullback after the company's huge post-IPO run. At press time, CRCL was trading at $199.24, down 7.80% over the last day. Circle stock has increased over 500% since launching on June 5, and Growth has been fueled by the energized market environment spawned by the introduction of the GENIUS Act, signed into law by President Donald Trump, which created a much more transparent regulatory framework for fiat-backed digital assets, legitimizing stablecoins and giving investors reason to be per reports, Compass Point analyst Ed Engel cautioned that this rally may be unwarranted. "Crypto investors often 'sell the news' following major legislative wins," said Engel. He added that CRCL has seen such a dramatic run-up that a backtrack is possible. He commented on the inevitable margin pressure resulting from increased revenue-sharing payments to distribution partners, as well as the incoming competition presented by traditional banks and fintech companies establishing their own stablecoins. Circle's revenue primarily comes from the interest on short-term Treasury holdings that back USDC. Analysts are mindful of potential changes in returns on Treasuries resulting from changes in the Federal Reserve's monetary policy. Seaport Research Partners raised its price target for Circle to $280 last week. They called Circle a "pure play" on stablecoins, designating it as one of the biggest beneficiaries of the new regulatory landscape. Wall Street analyst has a blunt warning on surging stock first appeared on TheStreet on Jul 22, 2025 This story was originally reported by TheStreet on Jul 22, 2025, where it first appeared. 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
15 hours ago
- Business
- Yahoo
BitGo Files to Go Public as Crypto Market Surges Past $4 Trillion
Crypto custody firm BitGo said it confidentially filed for an initial public offering in the U.S. The move comes as the digital asset market crossed a record high $4 trillion in total value last week. The filing, submitted just days after the market cap milestone, positions the Palo Alto, California-based company to join a growing list of digital asset firms heading to public markets. The demand is clear: Investors have been piling into crypto-related stocks in recent months, looking to capitalize on the sector's renewed momentum. Founded in 2013, BitGo secures digital assets for institutional clients including exchanges, banks and investment firms. It's widely regarded as one of the largest crypto custodians in the U.S. While not as visible to everyday investors as trading platforms, BitGo's role as a behind-the-scenes vault has grown more critical as financial institutions become more active in the industry. This year's rally in crypto asset prices — and progress toward regulatory frameworks in Washington — has spurred a wave of IPO activity. Stablecoin issuer Circle (CRCL) and trading platform eToro (ETOR) both went public recently and saw significant stock price appreciation. Circle's shares have soared more than 630% since their listing, fueled by institutional adoption of its USDC stablecoin. Other firms are rushing to follow. Last week, crypto asset manager Grayscale said it had filed for an IPO. Crypto exchange Gemini made a similar move. Bullish exchange, a sister company to CoinDesk, on Friday announced plans to go public in the U.S. The companies are betting that Wall Street's appetite for digital assets will continue even after the initial excitement fades. BitGo's potential listing would give investors another pure-play crypto stock at a time when exposure to the industry has become a popular allocation. For now, no timeline or valuation has been announced. The company raised $100 million in August 2023 at a $1.75 billion in to access your portfolio
CNBC
a day ago
- Business
- CNBC
Compass Point downgrades Circle to sell after Trump passes landmark crypto legislation
Circle Internet Group could ironically be under pressure after the passing of key crypto legislation, according to Compass Point. Analyst Ed Engle lowered his rating on the USDC stablecoin manager to sell from neutral and cut his price target on the stock $130 from $205. The new forecast implies downside of 40% from Monday's close. President Donald Trump on Friday signed into law the GENIUS Act, a piece of legislation dedicated to regulating stablecoins. But while this legislation is a positive for the crypto industry, Engle believes it will Circle will be under pressure in the short term. "While we expected CRCL to rally into stablecoin legislation, crypto investors typically 'sell the news' after highly anticipated events. As such, we expect CRCL to retrace some of its recent rally after the GENIUS act was signed into law on 7/18," he wrote. "We still believe USDC can be an integral part of the financial system; however, we're more cautious towards CRCL's long-term economics than its $53bn valuation implies." Shares of Circle have rallied a whopping 597% since debuting in early June. CRCL 3M mountain CRCL 3M chart Competitive pressures could also mount from here for Circle. "We expect more mainstream fintechs and banks to announce competing stablecoins in 2H25, primarily through white-labeling and/or M & A," Engle wrote. "These 2H25 catalysts could force investors to recalibrate long-term EBITDA margin and market share expectations while putting pressure on CRCL's premium valuation." The analyst also pointed out that there is a cap to the number of blockchain integrations Circle can complete from here, further limiting the stock's upside. "USDC is already integrated with 24 different blockchains, and there are only so many chains that can afford these integration fees. As such, we expect this income stream to normalize lower in 2026 and beyond," he wrote.
Yahoo
a day ago
- Business
- Yahoo
JPMorgan Wants In on the Stablecoin Pie. Should You Buy JPM Stock First?
Following the successful listing of Circle (CRCL) a few weeks ago, stablecoins have been thrust into the spotlight. Touted as a potential disruptor of the traditional payments system, it can be said that with stablecoins, the financial industry may be experiencing its 'AI Moment.' Now, with the GENIUS Act signed into law, stablecoins have received a regulatory shot in the arm as well. So, where does this all leave the world's largest bank in terms of market cap, JPMorgan (JPM)? Well, it can be safely said that CEO Jamie Dimon is not someone who is jumping up and down with excitement for stablecoins, stating, 'I think they're real, but I don't know why you'd want to [use a] stablecoin as opposed to just payment.' More News from Barchart This Penny Stock Wants to Become the MicroStrategy of Dogecoin Opendoor Stock Is Surging Higher in a Frenzied Retail Rally. How Should You Play OPEN Shares Here? Robinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOOD Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. But those who are labeling this as the financial giant's 'Kodak' or 'Blockbuster' moment will be disappointed as, in almost the same breath, the veteran CEO revealed that 'We're going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it.' I believe that this is a prudent strategic move on the part of Dimon, who is being cautious about stablecoins, while at the same time being cognizant of the competition from young fintechs. About JPMorgan Tracing its origins back to the 18th century, JPMorgan is the largest bank in the U.S. and among the world's most systemically vital financial institutions. Its main divisions include Consumer & Community Banking, Corporate & Investment Banking, Asset & Wealth Management, and Commercial Banking. Valued at a market cap of $809.5 billion, JPM stock is up 21.7% on a YTD basis. JPM stock also offers a dividend yield of 1.92%. Notably, the company has been raising dividends consecutively for the past 14 years and with a payout ratio of just 27.4%, there remains room for further growth. The company also rewards its shareholders with buybacks. Net share repurchases for Q2 2025 were at $7.1 billion which was a 45% rise from the year-ago period. So, is JPM stock a secure bet now? I believe it is, and here's why. Well-Positioned to Outperform One name that has emerged from the 2008 financial crisis even stronger is JPMorgan. And in recent years, with interest rates climbing, lighter federal oversight under President Donald Trump, and a renewed flurry of activity in IPOs and corporate deal-making, it's been well-positioned to reap the benefits. A lot of this is visible in its net interest income, still the core of any bank's earnings model. JPMorgan expects to pull in around $95.5 billion in this category for fiscal 2025, up from $92.5 billion last year. That jump stems from the bank's ability to sustain a strong spread between loan yields and deposit costs, which is among the best margins in the business. But lending isn't the only place the firm shines. Its investment management wing has been gaining both scale and importance. The business doesn't require much capital outlay, yet the returns are substantial. In Q2 2025, it reported $5.8 billion in revenue and net income of $1.5 billion. Compared to the same period the year before, that's an increase of nearly 10% and more than 16%, respectively. Overall, the AUM of the division rose by 18% in the same period to $4.3 trillion, with an impressive 36% return on equity, signaling solid internal performance. The First Republic acquisition helped, too. After Silicon Valley Bank's collapse, JPMorgan stepped in to purchase First Republic and its roster of high-net-worth clients. By merging that client base into its much larger network, the bank is aiming to grow its private wealth footprint. The model relies on scaling personalized service across a far broader infrastructure. This can unlock another meaningful avenue of growth. On the tech side, JPMorgan continues to invest heavily. For 2025, spending on technology is expected to reach about $18 billion. Most internal systems already operate on cloud platforms, and AI tools are no longer experimental, they're integrated. Over 200,000 employees are actively using them for tasks ranging from coding and customer outreach to call center efficiency. These tools also support fraud monitoring and credit evaluation, where JPMorgan has already been ahead of the curve for several years. Finally, circling back to stablecoins, the bank has developed something called JPMD. It's not quite a stablecoin, but it serves a similar purpose. JPMD is a tokenized form of deposit, designed with institutional use in mind. It runs on Base, a Layer 2 blockchain developed by Coinbase (COIN) on top of Ethereum (ETHUSD). JPMD complements JPM Coin, which JPMorgan already uses for internal transfers. The idea now is to take that concept further, offering value transfer and deposit services beyond the walls of one bank and extending them into a wider, crypto-enabled financial environment. Solid Finanicals A financial powerhouse like JPMorgan should also boast a strong balance sheet, backed by consistent revenue and earnings growth. And that's exactly what the company offers. JPMorgan has seen its revenue and earnings grow at 5-year CAGRs of 10.97% and 17.58%, respectively. Moreover, the company has reported an earnings beat in each of the past six quarters. In the most recent quarter, it reported a beat on both revenue and earnings, even though both witnessed a yearly decline. Revenues for the quarter came in at $44.9 billion, down 10.5% from the previous year, as EPS was reported at $5.24. This marked a YOY decline of 14.4% but was still above the consensus estimate of $4.49. Average loans and deposits, however, went up by 5% and 6% on a YOY basis to $1.4 trillion and $2.5 trillion, respectively. Book value per share, a key metric that indicates the the bank is increasing its net worth on a per-share basis, went up by 10% from the previous year to $122.51. Analyst Opinions on JPM Stock Analysts remain cautiously optimistic about JPM stock, giving it a consensus rating of 'Moderate Buy' with a mean target price of $296.64. This indicates upside potential of about 2% from current levels. Out of 26 analysts covering the stock, 14 have a 'Strong Buy' rating, three have a 'Moderate Buy' rating, eight have a 'Hold' rating, and one has a 'Strong Sell' rating. On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
