Key Points
Shrugging aside an analyst’s bearish new opinion on Circle Internet Group (NYSE: CRCL), investors are bidding the company’s shares higher today. A popular growth investor made several investments in Circle, an issuer and operator of stablecoins, yesterday, and that seems to be sufficient motivation for investors to click the buy button themselves today.
As of 10:31 a.m ET, Circle shares are up 7.3%, retreating from an earlier 11.8% rise.
July rolled in, and Ark Invest interest in Circle heated up
After the market closed yesterday, Ark Invest, led by Cathie Wood, reported that several of its exchange-traded funds (ETFs) had acquired Circle shares during the day.
Targeting a wide range of disruptive companies, the Ark Innovation ETF bought 210,343 shares of Circle, now accounting for 2.9% of the fund’s weighting. Similarly, the ARK Next Generation Internet ETF bought 53,846 Circle shares, giving the stock a 2.9% weighting in the fund, which invests in companies that operate mostly in the cloud. Lastly, Ark Invest bought 23,420 Circle shares — resulting in a 4.1% weighting in the Ark Blockchain and Fintech Innovation ETF, which invests in various blockchain and fintech companies.
Goldman Sachs analyst James Yaro lowered the firm’s price target on Circle Internet to $96 from $111
Should investors round up capital to invest in Circle stock now?
While Ark Invest’s enthusiasm for Circle stock is noteworthy, potential investors should also recognize that some analysts are less optimistic about its prospects. Above all, investors should remember the perils of blindly following one investor’s lead. Cathie Wood is bullish on the future of cryptocurrency, but investing in it (or in companies that operate it, like Circle) is speculative and will not meet the lower risk tolerance thresholds of conservative investors.
Should you buy stock in Circle Internet Group right now?
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.
