Galaxy Digital's Stock Declines Amid Broader Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy GLXY?
Source: Benzinga
Galaxy Digital Inc (GLXY) saw its stock price drop by 7.84% as it crossed below the 20-day SMA, reflecting a challenging trading environment.
Despite Galaxy Digital's strong performance in January with a 41.79% gain and a Buy rating of 4.41, the overall market is facing pressure, with the Nasdaq-100 down 1.39% and the S&P 500 down 0.82%. This indicates a sector rotation, as investors are reallocating their portfolios in response to broader market weakness.
The implications of this decline suggest that while Galaxy Digital has shown potential for growth, external market conditions are currently overshadowing its positive performance, leading to a reevaluation of investor sentiment.
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Analyst Views on GLXY
Wall Street analysts forecast GLXY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GLXY is 45.89 USD with a low forecast of 26.00 USD and a high forecast of 60.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 16.840
Low
26.00
Averages
45.89
High
60.00
Current: 16.840
Low
26.00
Averages
45.89
High
60.00
About GLXY
Galaxy Digital Inc. is engaged in the business of digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence (AI). The Company's digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, it develops and operates data center infrastructure to power AI and high-performance computing workloads. The Company's segments include Digital Assets, Data Centers, and Treasury and Corporate. Its Digital Assets operating business segment provides new products and capabilities such as staking, margin-based financing and active exchange-traded funds. The Data Centers segment comprises the Helios infrastructure assets. Its Data Centers segment develops and operates High Performance Computing (HPC) infrastructure to meet the growing demand for large-scale, power-ready facilities in the AI/HPC industry.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Galaxy Digital Reports Q4 Loss Amid Price Target Cuts
- Disappointing Earnings: Galaxy Digital reported a Q4 loss of $1.08 per share on revenue of $10.22 billion, missing Wall Street estimates of a $0.99 loss and $12.01 billion in revenue, primarily due to the depreciation of digital asset prices, which has put financial pressure on the company.
- Analysts Lower Price Targets: Following the weak Q4 results, analysts have cut their price targets for Galaxy Digital, with Goldman Sachs reducing its target from $27 to $24, while H.C. Wainwright lowered its target from $45 to $40, maintaining a 'Buy' rating, indicating that the current stock price presents an attractive buying opportunity.
- Share Repurchase Program: Galaxy Digital announced a $200 million share repurchase program for the next 12 months; despite the losses, CEO Mike Novogratz emphasized that a strong balance sheet allows the company to return capital to shareholders when the stock price does not reflect the business's value, showcasing confidence in future growth.
- Market Sentiment Recovery: Although GLXY shares are down 12% year-to-date and 16% over the past 12 months, retail sentiment around Galaxy Digital remains bullish, with many users on social media expressing optimism about the company's future and CEO's efforts to enhance shareholder value.
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- Dow Hits Record High: The Dow Jones Industrial Average surged 2.47% to reach an all-time high, reflecting market optimism about economic recovery, particularly amid strong rebounds in tech and chipmaker stocks.
- Consumer Confidence Rises: The University of Michigan's consumer sentiment index unexpectedly increased to 57.3, surpassing expectations of 55.0, indicating enhanced consumer confidence that could drive future spending.
- Bitcoin Rebounds: Bitcoin surged over 11% from a 1.25-year low, lifting cryptocurrency-exposed stocks and signaling renewed investor interest and confidence in crypto assets.
- Strong Corporate Earnings: Over 79% of S&P 500 companies exceeded earnings expectations, with S&P earnings growth projected at 8.4% for Q4, providing robust support for the market and indicating ongoing improvement in corporate profitability.
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Galaxy Digital Director Increases Shareholding
- Share Acquisition: Galaxy Digital Director Douglas R. Deason purchased 25,000 shares of GLXY at $20.80 each on Wednesday, totaling an investment of $519,950, indicating confidence in the company's future prospects.
- Market Performance: Despite Deason's purchase price being above the current market price of $18.90, GLXY surged 19.2% on Friday, reflecting a positive market sentiment towards the stock.
- Historical Purchase Record: Over the past twelve months, Deason has made two additional purchases of GLXY, totaling over $1.03 million at an average price of $30.23 per share, demonstrating his belief in the company's long-term value.
- California BanCorp Investment: On the same day, David J. Volk bought 27,000 shares of California BanCorp at $18.64 each for a total of $503,280, with the stock currently up 1.6%, indicating potential short-term gains from this investment.
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U.S. Stocks Surge as Tech Earnings Boost Market Sentiment
- Market Performance: The S&P 500 Index rose by 1.10%, and the Dow Jones Industrial Average increased by 1.60%, reaching an all-time high, reflecting positive market sentiment driven by strong tech earnings results.
- Tech Stock Recovery: Gen Digital and Roblox surged over 7% and 9%, respectively, after forecasting full-year adjusted EPS and bookings above consensus, indicating a robust recovery in the tech sector that may attract more investment.
- Consumer Confidence Boost: The University of Michigan's consumer sentiment index unexpectedly rose to 57.3, a six-month high, surpassing expectations of 55.0, reflecting optimistic consumer sentiment about the economic outlook, which supports further market gains.
- Inflation Expectations Shift: While short-term inflation expectations fell, long-term expectations ticked up slightly, indicating market concerns regarding the Fed's monetary policy, which could influence future investment decisions and market volatility.
See More
Financial Stocks Plunge Amid Volatile Week
- Galaxy Digital Plummets: Galaxy Digital (GLXY) saw its stock plunge 30% over five sessions ending February 6 after reporting a wider-than-expected loss for Q4 2025, which not only undermines investor confidence but may also negatively impact sentiment in the digital asset sector.
- Figure Technology Solutions Decline: The blockchain lending platform (FIGR) tumbled 27% during the same week due to disappointing earnings, raising concerns about its future profitability and prompting investors to reassess its business model.
- PayPal's Disappointing Update: PayPal Holdings (PYPL) experienced a 23% drop following a disappointing quarterly update, reflecting challenges in the competitive payments market and potentially affecting its future market share and growth prospects.
- Other Financial Stocks Struggle: Several financial stocks, including IREN (down 22%) and FactSet Research Systems (down 19%), suffered significant losses amid a broader selloff in enterprise software stocks, indicating a waning confidence in the fintech sector.
See More
U.S. Stocks Surge as Tech Earnings Boost Market Sentiment
- Tech Stock Rebound: The S&P 500 rose by 1.20% and the Dow Jones Industrial Average surged by 1.48%, reaching an all-time high, driven by better-than-expected tech earnings that boosted investor confidence in the sector's recovery.
- Bitcoin Recovery: Bitcoin rebounded over 7% from a 1.25-year low, lifting cryptocurrency-exposed stocks and alleviating concerns about liquidity in the crypto market, indicating renewed investor interest in digital assets.
- Amazon Investment Concerns: Amazon's announcement of a $200 billion investment in data centers, chips, and other equipment led to a more than 9% drop in its stock, raising doubts about the long-term returns of its AI investments and potentially impacting future investor confidence.
- Earnings Season Insights: With 79% of S&P 500 companies exceeding expectations and Q4 earnings projected to grow by 8.4%, this indicates strong corporate profitability, which may provide ongoing support for the market despite economic uncertainties.
See More
Galaxy Digital Reports Q4 Loss Amid Price Target Cuts
- Disappointing Earnings: Galaxy Digital reported a Q4 loss of $1.08 per share on revenue of $10.22 billion, missing Wall Street estimates of a $0.99 loss and $12.01 billion in revenue, primarily due to the depreciation of digital asset prices, which has put financial pressure on the company.
- Analysts Lower Price Targets: Following the weak Q4 results, analysts have cut their price targets for Galaxy Digital, with Goldman Sachs reducing its target from $27 to $24, while H.C. Wainwright lowered its target from $45 to $40, maintaining a 'Buy' rating, indicating that the current stock price presents an attractive buying opportunity.
- Share Repurchase Program: Galaxy Digital announced a $200 million share repurchase program for the next 12 months; despite the losses, CEO Mike Novogratz emphasized that a strong balance sheet allows the company to return capital to shareholders when the stock price does not reflect the business's value, showcasing confidence in future growth.
- Market Sentiment Recovery: Although GLXY shares are down 12% year-to-date and 16% over the past 12 months, retail sentiment around Galaxy Digital remains bullish, with many users on social media expressing optimism about the company's future and CEO's efforts to enhance shareholder value.
See More
US Stocks Surge, Dow Hits All-Time High
- Dow Hits Record High: The Dow Jones Industrial Average surged 2.47% to reach an all-time high, reflecting market optimism about economic recovery, particularly amid strong rebounds in tech and chipmaker stocks.
- Consumer Confidence Rises: The University of Michigan's consumer sentiment index unexpectedly increased to 57.3, surpassing expectations of 55.0, indicating enhanced consumer confidence that could drive future spending.
- Bitcoin Rebounds: Bitcoin surged over 11% from a 1.25-year low, lifting cryptocurrency-exposed stocks and signaling renewed investor interest and confidence in crypto assets.
- Strong Corporate Earnings: Over 79% of S&P 500 companies exceeded earnings expectations, with S&P earnings growth projected at 8.4% for Q4, providing robust support for the market and indicating ongoing improvement in corporate profitability.
See More
Galaxy Digital Director Increases Shareholding
- Share Acquisition: Galaxy Digital Director Douglas R. Deason purchased 25,000 shares of GLXY at $20.80 each on Wednesday, totaling an investment of $519,950, indicating confidence in the company's future prospects.
- Market Performance: Despite Deason's purchase price being above the current market price of $18.90, GLXY surged 19.2% on Friday, reflecting a positive market sentiment towards the stock.
- Historical Purchase Record: Over the past twelve months, Deason has made two additional purchases of GLXY, totaling over $1.03 million at an average price of $30.23 per share, demonstrating his belief in the company's long-term value.
- California BanCorp Investment: On the same day, David J. Volk bought 27,000 shares of California BanCorp at $18.64 each for a total of $503,280, with the stock currently up 1.6%, indicating potential short-term gains from this investment.
See More
U.S. Stocks Surge as Tech Earnings Boost Market Sentiment
- Market Performance: The S&P 500 Index rose by 1.10%, and the Dow Jones Industrial Average increased by 1.60%, reaching an all-time high, reflecting positive market sentiment driven by strong tech earnings results.
- Tech Stock Recovery: Gen Digital and Roblox surged over 7% and 9%, respectively, after forecasting full-year adjusted EPS and bookings above consensus, indicating a robust recovery in the tech sector that may attract more investment.
- Consumer Confidence Boost: The University of Michigan's consumer sentiment index unexpectedly rose to 57.3, a six-month high, surpassing expectations of 55.0, reflecting optimistic consumer sentiment about the economic outlook, which supports further market gains.
- Inflation Expectations Shift: While short-term inflation expectations fell, long-term expectations ticked up slightly, indicating market concerns regarding the Fed's monetary policy, which could influence future investment decisions and market volatility.
See More
Financial Stocks Plunge Amid Volatile Week
- Galaxy Digital Plummets: Galaxy Digital (GLXY) saw its stock plunge 30% over five sessions ending February 6 after reporting a wider-than-expected loss for Q4 2025, which not only undermines investor confidence but may also negatively impact sentiment in the digital asset sector.
- Figure Technology Solutions Decline: The blockchain lending platform (FIGR) tumbled 27% during the same week due to disappointing earnings, raising concerns about its future profitability and prompting investors to reassess its business model.
- PayPal's Disappointing Update: PayPal Holdings (PYPL) experienced a 23% drop following a disappointing quarterly update, reflecting challenges in the competitive payments market and potentially affecting its future market share and growth prospects.
- Other Financial Stocks Struggle: Several financial stocks, including IREN (down 22%) and FactSet Research Systems (down 19%), suffered significant losses amid a broader selloff in enterprise software stocks, indicating a waning confidence in the fintech sector.
See More
U.S. Stocks Surge as Tech Earnings Boost Market Sentiment
- Tech Stock Rebound: The S&P 500 rose by 1.20% and the Dow Jones Industrial Average surged by 1.48%, reaching an all-time high, driven by better-than-expected tech earnings that boosted investor confidence in the sector's recovery.
- Bitcoin Recovery: Bitcoin rebounded over 7% from a 1.25-year low, lifting cryptocurrency-exposed stocks and alleviating concerns about liquidity in the crypto market, indicating renewed investor interest in digital assets.
- Amazon Investment Concerns: Amazon's announcement of a $200 billion investment in data centers, chips, and other equipment led to a more than 9% drop in its stock, raising doubts about the long-term returns of its AI investments and potentially impacting future investor confidence.
- Earnings Season Insights: With 79% of S&P 500 companies exceeding expectations and Q4 earnings projected to grow by 8.4%, this indicates strong corporate profitability, which may provide ongoing support for the market despite economic uncertainties.
See More
