Ark Invest CEO Cathie Wood pointed to short-term market inefficiency around Circle Internet Group Inc. (NYSE:CRCL) on Sunday, despite the stock gaining significantly since its IPO.
Circle shares underperform over the past year
Wood quoted a post by analyst Alex Obchakevich comparing the one-year performances of Visa Inc. (NYSE:V), Mastercard Inc. (NYSE:MA) and Circle.
Visa was up 5% over the year, Mastercard roughly flat to slightly down, and Circle sharply down for much of the period.
‘Short-Term Inefficiencies’
Wood, however, didn’t appear too impressed by the one-year chart.
The veteran investor stated that the chart illustrates the “short-term inefficiencies” inherent in public equity markets, despite Circle’s sharp gains since its debut.
Circle priced its initial public offering at $31 per share on June 5, 2025. The stock opened at $69, up about 123% from its $31 IPO price, and closed its first session at $83.23, a gain of about 168%. Circle’s shares have gained over 180% since the IPO.
Wood said that many traditional financial-services analysts built careers and track records on Visa and Mastercard and struggle to "fathom" a pure-play disruptor like Circle.
She contrasted Visa and Mastercard’s long-term gains since their IPOs with ongoing technology disruption in payments, positioning CRCL as a “prime beneficiary.”
Ark Invest’s Big Bet on CRCL
Ark Invest remains a major investor in Circle. The firm holds $481.43 million worth of CRCL shares across ARK Innovation ETF (BATS: ARKK), ARK Next Generation Internet ETF (BATS: ARKW) and ARK Blockchain & Fintech Innovation ETF (BATS:ARKF)
Price Action: Circle shares were down 1.16% in Monday’s pre-market trading after closing 5.16% higher at $87.98 during Friday’s regular trading session.
Benzinga’s Edge Stock Rankings show that CRCL demonstrated strong short- and medium-term momentum but underperformed over the long term.
Photo courtesy: Shutterstock
Login to comment