Circle Stock Falls 17% Amid Open USD Competition, Then Rebounds; Analysts Split Between $55 and $650 Targets

Circle Internet Group (CRCL) shares plummeted over 17% on Tuesday and rebounded in pre-market trading Wednesday after the launch of Open USD, a rival stablecoin backed by Visa, Mastercard, Coinbase, and other major payment firms, sparked concerns about Circle's distribution and revenue models.

Wall Street remains deeply divided on the threat. Compass Point downgraded its price target to $55 from $97, citing Open USD's ties to major payment networks, while William Blair maintained an 'Outperform' rating with a $650 price target, arguing the market overreacted to competitive fears. Analyst price targets now range from $55 to $650, reflecting an unusually wide divide over Circle's long-term competitive position in the stablecoin market.