Exodus Movement (NYSE:EXOD) is a crypto wallet company. It has been one of the most volatile names in the stock market in the past week. The stock rose 103% from January 27 to January 29, mostly due to speculative trading after the NYSE uplisting and a Buy rating from HC Wainwright.
However, the stock has since declined significantly. Here’s what you need to know:
XOD
The broader crypto market hasn’t declined this week, but the DeepSeek spook did cause bearish options activity. Plus, EXOD reached nosebleed valuations before profit-taking began, and even the $50 price target by HC Wainwright was surpassed. In fact, EXOD stock reached $112.25 before tumbling.
The stock is extremely volatile and has high insider ownership. It also holds over 1,900 Bitcoins (BTC-USD) and 2,660 Ethereum (ETH-USD), so there’s a huge risk to the stock if these cryptos decline in the future. There are also uncertainties regarding the Fed’s interest rate policies. Cryptos could see more pessimism if rates are held higher for longer.
Exodus’ Q3 revenue rose 68% year-over-year to $20.1 million and net income turned positive at $800,000. Monthly active users also grew to $1.6 million.
The exchange volume hit $1.26 billion, and the company added a revamped crypto swap feature with lower fees. This is why volumes surged here.
However, even though the growth here has been strong, the valuation is above and beyond even what bulls had expected a month back. A correction was only natural.
Investors should expect more extreme swings in both directions in the coming weeks. The stock is currently overvalued by all fundamental metrics, but any crypto-related mania can still drive it much higher.