On August 5, Circle Internet Corp. declined 5.91% in regular trading, trading at $61.35/share with turnover of $478 million, reversing an earlier pre-market gain of over 8%.

The company reported Q2 EPS of $0.18, beating the analyst consensus of $0.16 and swinging from a loss of $4.48 per share a year earlier — a 141.86% improvement. However, Q2 revenue of $701.3 million missed analyst expectations of $713.1 to $718.6 million, triggering a rapid reversal of pre-market gains after the opening bell.

The revenue shortfall validated Morgan Stanley's August 3 downgrade to Underweight with a target price slashed from $106 to $38, citing USDC balance contraction, reserve-income sensitivity, and a costly transition toward transaction-based revenue. The bank cut USDC circulation assumptions by 33% for 2027 and 44% for 2028. With bulls and bears sharply divided, the market opted to take profits on the pre-market rally, pushing shares into negative territory during the session.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)