Circle's stock (CRCL) rose by 168% on its first trading day, marking the largest first-day pop for a billion-dollar firm in over 30 years. However, one analyst cautions against immediate investments.
Debut Success of Circle
Circle, known for its stablecoin USDC, experienced intense investor enthusiasm and an explosive trading session on its debut day, with a notable 168% increase.
Expert Warning
Former Goldman Sachs analyst Dom Kwok advised investors to avoid purchasing CRCL stock for now. In his recent X post, he stated, "When bankers price an IPO, they engineer a 'pop' on IPO day, as we just saw with Circle's 168% pop."
Lockup Period and Its Consequences
Kwok emphasized the importance of the IPO lockup period, which for Circle will last 180 days. He highlighted the advice to "wait 90-180 days after IPO to invest," as significant selling pressure often arises when the lockup ends, like in the case of Facebook.
Despite the initial success of Circle's stock, experts advise caution and recommend waiting for the end of the lockup period to avoid potential losses.
