14 Stocks on Jim Cramer’s Radar

6. Circle Internet Group (NYSE:CRCL)

Number of Hedge Fund Holders: N/A

Circle Internet Group (NYSE:CRCL) is one of the 14 stocks on Jim Cramer’s radar. During the episode, Cramer discussed Circle Internet Group (NYSE:CRCL), which recently launched its IPO. He remarked:

“Last week, we saw one of the flashiest deals of the year when Circle Internet Group came public… Speaking of the financials, Circle’s numbers, they’re pretty impressive. In the first quarter of the year, they posted 59% revenue growth, 75% net income growth. So, at the end of the day, where do I come down on Circle? Look, this is actually a pretty darn good business. USDC’s popular.

The financials look pretty good for an IPO name, but the stock, okay, look, very hard to recommend after watching the company’s valuation jump from $5.5 billion at the beginning of the IPO process to over $25 billion in just a matter of weeks. I mean, if we divide Circle’s 2024 net income by the number of shares outstanding after this offering, then last year, it earned about 70 cents per share at its current price. That means Circle’s selling for roughly 165 times last year’s earnings…

… Okay, long story short, I like Circle. I’m having trouble getting to this price. I’m not willing to pay through the nose for it. It doesn’t help that more than half of the shares sold in Circle’s IPO came from early investors and… company insiders, including the CEO, rather than the company itself. In part, that’s because the company didn’t really need to raise money, which is good, but if the insiders would ring the register at 31, do you really want to be a buyer at 115? Or maybe the insiders were dead wrong? I don’t know.

Plus, Circle’s joined at the hip with the crypto ecosystem, and crypto… it’s inherently volatile. I think you’ll get a better opportunity simply by being patient. Honestly, the IPO market’s starting to get a little crazy here… Here’s the bottom line: Circle Internet Group’s a solid company, but the stock right now has gotten too hot for me. I can’t recommend it up here. Why don’t you let it cool off before you even think about pulling the trigger?”

Circle (NYSE:CRCL) provides infrastructure for stablecoin and blockchain-based financial applications. The company provides a platform that supports tokenized funds, liquidity, payments, and developer tools.