After Buying Circle Through a 42% Drop, Cathie Wood Says Analysts Cannot Fathom It

Cathie Wood has kept buying Circle as the stock fell 42% in a year. On Sunday she said why. Wall Street analysts who built their careers on Visa and Mastercard, she argued, cannot understand the company.

Circle issues USDC, a digital dollar backed by cash and short-term US government debt. Wood runs ARK Invest, and Circle is now the biggest crypto bet in her flagship fund.

Wood's Case Against the Analysts

Wood was replying to a chart built from Artemis data, where analyst Alex Obchakevich indicated that the market was changing its mind about who actually earns money on stablecoins.

It tracked the three payment firms over a year. Visa was up about 5%, Mastercard about 1%. Circle was down 42%.

Though CRCL has appreciated 84% since its IPO, this one-year chart illustrates the inefficiency of public equity markets in the short term. Many financial services analysts have built their long-term track records off of $V and $MA and cannot fathom Circle, the disrupter," Wood challenged.

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