An analyst from Seeking Alpha reiterated a 'buy' rating for Circle Internet Group (CRCL). This decision follows a 40% decline in the stock price and recent volatility. The analysis suggests that CRCL's valuation has become reasonable after the drop.
The positive outlook is supported by the strong profitability of its flagship stablecoin, USDC. USDC reported $740 million in revenue. This represents 66% year-over-year revenue growth.
The report acknowledges significant challenges ahead. These include headwinds from lower interest rates and increasing competition. These factors might temper USDC’s circulation growth.
Despite a dampened growth outlook, the author believes Circle’s long-term prospects remain favorable. This view is tied to the secular adoption of stablecoins, supporting expectations for positive returns. The stock presents a "growth-at-a-reasonable-price" profile.