KBR Slumps, Circle Soars on Stablecoin Bill, Kroger Beats
Jun 20, 2025
KBR's shares took a hit after losing a major U.S. government contract, raising concerns about its reliance on such deals. Meanwhile, Circle's stock soared by 17% following new stablecoin regulations, with analysts predicting massive growth in the crypto market. Kroger exceeded sales expectations, highlighting ongoing consumer spending on groceries. The discussion playfully considers the intersection of stablecoins with everyday grocery shopping, reflecting on the future of how we pay for essentials.
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insights INSIGHT
Risks for Government Contractors
The termination of KBR's government contract alarms investors despite company assurances.
It signals broader risks for firms heavily dependent on government contracts amidst new efficiency initiatives.
insights INSIGHT
Circle's Surge on Stablecoin Bill
Circle's stock skyrockets amid new US stablecoin regulatory clarity.
Stablecoin market could expand from $260 billion to $2 trillion, fueling huge revenue potential.
insights INSIGHT
Consumer Spending on Essentials
Kroger's strong grocery sales show consumers still prioritize essentials despite economic troubles.
- KBR (KBR) shares dropped nearly 9%, the most since early November after the engineering company announced its role in the US Transportation Command (TRANSCOM)'s Global Household Goods Contract, which is designed to improve the moving system for military service members and their families. KBR was involved in the contract in a joint venture with HomeSafe Alliance. Bloomberg Intelligence analyst Scott Levine says the termination of the contract may reflect risks to government service providers due to efficiency initiatives imposed by the Trump administration.
- Circle (CRCL) shares rose as much as 17% 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 early 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.
- Kroger (KR) sales surpassed expectations during the latest quarter, a sign that consumers are still spending on groceries and other essentials despite economic turbulence. The nation’s largest supermarket operator said its comparable sales, excluding fuel, rose 3.2% — better than what Wall Street analysts were expecting. The company also raised its full-year sales guidance to a range of 2.25% to 3.25%. It reaffirmed the rest of its outlook. Chief Financial Officer David Kennerley told analysts on the company’s conference call that Kroger has seen an improvement in grocery volumes in recent quarters, which contributed to growth in the latest quarter. Kroger expects further volume expansion over the rest of 2025. Shares of the supermarket operator rose.
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