Cathie Wood bets on 'disrupter' stock with bullish analyst call

Investment guru Cathie Wood has continued to back Circle Internet Group (NYSE: CRCL), even as its stock price has plummeted by 42% over the past year. Circle is a cryptocurrency firm renowned for its USDC stablecoin, pegged to the US dollar, and is currently the second-largest stablecoin after Tether's USDT. According to onchain analytics platform DeFiLlama, USDC holds a $73.88 billion market cap, which makes up 24.36% of the entire stablecoin market.

Analyst Alex Obchakevich compared Circle's performance to that of Visa (NYSE: V) and Mastercard (NYSE: MA), two leading payment companies, over the past year. While Visa and Mastercard have seen a 5% and 1% increase, respectively, Circle has dropped by 42%, but has gained 30% in just one month. Obchakevich explained that Circle's old trading strategy, based on stablecoin rates, is no longer valid, as the company has achieved profitability in Q2 by doubling its transaction revenue.

Despite the stock's still significant decline over the past year, Obchakevich argued that Circle's business model has evolved, making it a prime beneficiary of the changing market landscape.