Circle (NYSE:CRCL) shares are lower today, despite the Stablecoin issuer reporting better-than-expected adjusted third-quarter earnings of 64 cents per share, on $740 million in revenue, both of which topped analyst forecasts. What's moving the stock lower is the company's updated full-year guidance showing higher costs and concerns over lower reserve returns amid a fast-changing interest rate environment.
At last check, the stock is down 9.3% to trade at $89.13 contributing to a 40% fumble in the past three months and hitting their lowest mark since their June debut.
Despite costs, Circle executives remain confident about the company's long-term future, pointing to steady growth in Stablecoin adoption. The company currently holds accounts for 29% of the Stablecoin market, second only to Tether, the issuer of the USD Token (USDT).
Circle stock is trading well below its June 23 record high of $298.99 and is heading for three-straight weekly losses. The skid has sent CRCL's 14-Day Relative Strength Index (RSI) down to 28, deep in "oversold" territory.
