Weekly Roundup: Coinbase Rises, Circle Soars, Solar Stocks Fall

On this episode of Stock Movers:

- Coinbase (COIN) rallied 27% this week, becoming the biggest weekly gainer in the S&P. Coinbase secured its Markets in Crypto Assets license from the Luxembourg Commission de Surveillance du Secteur Financier, enabling the company to offer a full suite of crypto products to all 27 EU member states. The company also introduced Coinbase payments for commerce platforms, the first full-stack stablecoin payment solution built for commerce platforms at scale.

- Circle (CRCL) shares jumped 20% on Friday after Seaport Global gave the stablecoin issuer its first buy rating in the wake of the US Senate’s move this week to pass legislation setting up regulatory rules for cryptocurrencies pegged to the dollar. The company behind USDC, the second-largest stablecoin by market share, has seen its shares rise more than 600% since they started trading earlier this month. Optimism around stablecoin regulations has driven the strength. Seaport analyst Jeff Cantwell sees the global stablecoin market having the potential to reach $2 trillion at some point, from about $260 billion now. That would translate into annual revenue growth of 25%-30% for Circle, he wrote in a note to clients Friday.

- Solar stocks like Enphase Energy (ENPH) and First Solar (FSLR) declined this week. Earlier in the week, Senate Republicans released a bill that would end tax credits for wind and solar earlier than for other sources, prompting downgrades for the sector at KeyBanc. The new version of the bill would end incentives for wind and solar in 2028, though tax breaks for other sources of power including nuclear, hydropower and geothermal would be allowed to remain until being phased out in 2036.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, the.

Speaker 2 (00:08):
Stock Movers podcast, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data.

Speaker 3 (00:18):
We are here and we want to take a look
at some of the stocks that were on the move
this past week in our Stock Movers podcast, and we
got to talk about Coinbase. It was up about twenty
seven percent this week, looking at for the week overall,
the number one gainer in the S and P as

(00:38):
a result, and I'm just looking at there was a
lot of data throughout the week for this one. We
did get some headlines on Friday about Coinbase being cleared
to offer crypto products across all EU states, So that
basically enables the company to offer full suite of products
to all twenty seven EU member states. So we're talking
about four hundred and fifty million people across the EU,

(01:01):
so that was a big deal. We also saw earlier
in the week Coinbase introducing Coinbase payments for commerce platforms.
So there's a lot going on in this space, especially
when it comes to the regulatory environment, and we're seeing it,
you know, kind of a regulatory framework being worked out,
and so Coinbase certainly seen as someone, as you know,

(01:24):
to benefit in a big way, and we certainly saw
that play out in the share price this week.

Speaker 1 (01:28):
Not the only mover in the crypto industry to the
upside this week. You also were watching everything that happened
with Circle Carol.

Speaker 3 (01:36):
Circle Internet Group up eighty percent this past week, folks,
big mover to the up side. It's up about six
hundred and seventy five percent since it's IPO on June fifth,
So we have seen this one just explode to the upside.
It's the company behind USDC, the second largest stable coin
by market share. It shares gaining in the Friday trade

(01:57):
as well, So we just saw momentum throughout the week.
Catalysts Today or on Friday, I should say, Seaport Global
gave the stable coin issue it's first by rating the
week of the US Senate's move this week to pass
some regulatory legislation, right, So this is certainly something that
is seen as an upside catalyst. Legislation setting up regulatory

(02:20):
rules for cryptocurrencies peg to the dollars. So there's a
lot of momentum. I feel like in this space.

Speaker 1 (02:27):
How is it that you always have the stocks that
did well.

Speaker 3 (02:29):
I don't know you as a gainers my sunny disposition.

Speaker 1 (02:32):
Okay, your sunny disposition.

Speaker 2 (02:33):
Where you going?

Speaker 1 (02:34):
I'm going to the other side of things. The worst
performers in the S and P five hundred this week
we're solar companies en Phase Energy, First Solar, in Phase.
The ticker for en Phase Energy is e NPH First Solar.
Just pulling it up here is FSLR. First Solar fell

(02:55):
by seventeen point two percent. En Phase Energy fell by
twenty one point four percent. Shares of US solar companies
fell sharply this week. This was after we learned that
Center Republicans released this bill that would essentially end clean
energy tax credits earlier than expected. What that did was
it dashed hopes that major cuts passed by the House

(03:15):
would not stick. You had other companies move lower this week.
Sun Run, which is the largest US rooftop panel installer,
plunged this week, the most ever in interra date trading.
Solar edge technologies fell as well, and in Phase Energy
the worst performer in the S and P five hundred,
down by twenty one point four percent. Get another one

(03:36):
for US, I got another one. Accenture. This is an
interesting one because this is a IT consulting firm. Huge
global company. Shares fell this week, not the worst performer
in the S ANDP, but still among the worst performer
I'd say, top five worst performing stock this week, down

(03:56):
eight point five percent. The company reported results that highlighted
bookings as a weak spot of the print. The company
CEO said, accentsrire quote continues to see a significantly elevated
level of uncertainty in the global economic and geopolitical environment
as compared to calendar year twenty twenty four. Bloomberg Intelligence
came out and said that the seven percent bookings decline

(04:19):
lower headcounts suggest soft discretionary IT spending demand. There were
a lot of questions about the effect on government cuts,
especially here in the US. Interestingly enough, the company said
that quote federal business had an immaterial impact on its
overall growth in the quarter, So it wasn't a federal
it was boo bookings moving forward. Got it is the
concern that analysts have not necessarily federal cuts. It's not

(04:40):
like Boozelan, which has such a big, such big exposure
to the US government.

Speaker 3 (04:44):
So Accentri for the week overall.

Speaker 1 (04:45):
Eccentri for the week overall, ticker ACN down eight point
four to five percent for.

Speaker 2 (04:51):
The week overall.

Speaker 3 (04:52):
Hey, I just want to go back to coin base
Global because I didn't want to eat up all the time.
But there was so much stuff on this name. As
I mentioned, it was up about twenty seven percent this week.
I forgot to mention it in'ct a deal to have
the world's second biggest stable coin USAC is just collateral
in US futures trading.

Speaker 1 (05:08):
So there's a handshake between Circle Internet and Coinbase.

Speaker 3 (05:12):
See, this is why we have the crypto dude in house.
And the other thing. The other story this was I
think on June seventeenth, the i JP Morgan Chase launching
a pilot for token called JPMD which represents dollar deposits
and we'll transfer a fixed amount to coin based Global
on the public black blockchain base. So there's just so

(05:33):
much stuff this past week. I highly recommend you head
to the Bloomberger Bloomberg dot com to check it out.

Speaker 2 (05:41):
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