On May 11, Circle Internet Corp. fell 5.19% overnight, trading at $124.39/share, with trading volume of $32.34 million. The decline came immediately after the company reported Q1 earnings before market open, following a sharp 16.53% rally just days earlier on stablecoin regulation optimism.
Circle reported Q1 net income from continuing operations of $55 million, with total revenue and reserve income growing 20% year-over-year and USDC circulation rising 28% YoY. Analysts had expected EPS of approximately $0.18–$0.19, compared to $0.43 in the prior quarter and $0.30 in Q1 of the previous year. Market participants had flagged concerns ahead of the release that revenue could fall short of consensus estimates of approximately $715 million, citing weakness in Coinbase stablecoin revenue as a potential read-through. Additionally, reports noted ongoing crypto market softness and congressional disputes over stablecoin regulation and yield provisions as potential headwinds for the sector.
The pullback appears to reflect a classic sell-the-news reaction, as the stock had already priced in significant optimism from the Senate regulatory compromise reached days prior.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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