Circle Internet Group (NYSE:CRCL) is one of the 14 stocks Jim Cramer recently looked at. While discussing the stock, Cramer noted that its valuation is unjustifiable. He said:
“Take Circle Internet Group… Of course, Circle’s current price is crazy. Can’t be justified by any imagination. Don’t take it from me. Take it from the firm that bought it public, JPMorgan. Today, on the first day of Wall Street coverage, JPMorgan initiated its coverage on Circle with an Underweight rating, that’s a sell, saying the stock’s valuation is being ‘pushed outside our comfort zone’. They’re using an $80 price target, and that’s already factoring a nice premium for investment enthusiasm.
Goldman Sachs was a tad more backhanded. It initiated coverage on Circle with a Neutral rating, but Goldman’s using an $83 price target. This is $181 stock, for heaven’s sake. That seems more negative than neutral. We have to ask ourselves, what is happening here? Well, we know that the market’s exuberant about anything crypto… They’re not thinking about potential competition. They’re thinking about the scarcity value of anything crypto. They don’t understand that Circle stock is run like this in large part because only 50 million shares of the 200 million shares issued are free to trade…
When there are so few shares, it’s very easy for buyers to annihilate the short sellers who bet against these stocks, and there are plenty of short sellers here… I’m sure the bulls are thinking the same thing can happen with Circle. I do not want to pass judgment on the buyers. They think they have something going, and it will last until more stock is free to trade. Right now, I’m troubled by these moves, but not overly concerned…
Circle’s too high, but at least it’s profitable. Let’s not kid around, though. Right now, these two are in rarefied territory, and rarefied territory doesn’t last. We might be early, still, it’s worth watching. It only takes a few of these to recognize that things are getting a little dangerous. For now, buyers are shooting short sellers like fish in a barrel. But once the lockup on insider selling expires, the shorts can start shooting back. It’s not GameStop. It’ll be a very fair fight.”
A professional investor in a bespoke suit calmly analysing a stock exchange chart.
Circle (NYSE:CRCL) provides a platform supporting stablecoins and blockchain-based financial applications, which offers tools for payments, liquidity, tokenized assets, and developer integration through its U.S. dollar-denominated stablecoin network.
While we acknowledge the potential of CRCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
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