Circle Internet Group Inc (NYSE:CRCL) stock is leading the tech sector rally today, up 20.3% to trade at $73.84 at last look. The cryptocurrency fintech reported adjusted fourth-quarter earnings of 43 cents per share on $770 million in revenue, both of which topped estimates. Stablecoin demand powered the top-line beat, while Circle also earned preliminary approval for a U.S. national trust bank charter assets.
This is poised to be the stock's best single-session gain since June 20. The shares fell to an all-time low of $49.90 on Feb. 5, but today are clearing overhead resistance at their descending 50-day moving average. Despite the rally, CRCL remains 6.8% below its year-to-date breakeven level.
A short squeeze could be powering today's gains. Short interest increased by 55.4% in the most recent reporting period, and the 22.74 million shares sold short account for nearly 11% of the stock's total available float.
If CRCL can maintain this momentum for a sustained period of time, analyst revisions could keep the wind at the equity's back. Of the 22 brokerages covering the stock, 12 maintain a "hold" or worse rating.
Options traders are coming out in droves. In just the first hour of trading, 69,000 calls have changed hands, volume that's seven times the average intraday amount and more than double the number of puts traded. The weekly 2/27 80-strike call is the most popular, while the March 75 call is seeing new positions being bought to open.
