Galaxy Stock Moves Higher: What's Happening?
Galaxy Digital Inc (NASDAQ:GLXY) shares are rising Monday, a day ahead of its third-quarter earnings report. Here’s what you should know.
- Galaxy Digital stock is surging to new heights today. What’s fueling GLXY momentum?
Galaxy Digital Stock Rises Ahead Of Q3 Earnings
Galaxy, which runs digital asset and data center businesses, reports third-quarter results before Tuesday’s open. Analysts expect earnings of 11 cents per share on $11.44 billion in revenue.
Galaxy’s last report, on Aug. 5, showed a company leaning less on crypto prices. Even with prices sliding, adjusted gross profit in the company’s digital assets unit rose 34% from the first quarter, to $66 million. Data centers added $20 million as the CoreWeave buildout progressed, and by quarter-end all 133 megawatts of Phase I were running.
Galaxy projects roughly $80 million in leasing revenue from Phase I each quarter, at a project-level margin above 90%. At the end of June, Galaxy held $2.7 billion in equity and $2.5 billion in cash and stablecoins.
The estimates call for a profit after last quarter’s loss. Earnings above 11 cents per share would suggest crypto’s recovery and the data center ramp are lifting results faster than analysts expected. Earnings below could keep attention on Galaxy’s reliance on a single data center customer. Revenue follows the same logic: above $11.44 billion would point to stronger activity, and below it, weaker.
Rosenblatt Keeps Buy On Galaxy Digital
The stronger earnings outlook has also drawn attention from Wall Street analysts. Rosenblatt analyst Chris Brendler maintained a Buy rating on Galaxy and lowered the price target to $30 from $35, citing market conditions.
Rosenblatt describes itself as “decidedly more optimistic than the current stock price action suggests.” Brendler argues the shares are too cheap. Galaxy’s computing contracts all sit with CoreWeave, which the note calls the market’s current scapegoat, yet investors are giving too little weight to Galaxy’s growth options and large power pipeline.
Balance-sheet strength is the first support: Phase 2 is already funded. Galaxy also draws revenue from more places than most rivals in high-performance computing, Brendler said. Looking to Tuesday, Brendler expects the data center segment to keep advancing.
GLXY Shares Are Jumping
GLXY Price Action: Galaxy shares were up 5.31% at $15.46 at the time of publication on Monday. The stock is trading near its 52-week low of $14.91, according to Benzinga Pro.
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