Coinbase Sinks as Goldman Downgrades to Sell Rating
A Wall Street analyst thinks things will only get worse for the crypto exchange.
avatar
Staff or Guest writer for The Dog of Wall Street.
2022-06-27 13:32

Goldman Sachs analyst Will Nance downgraded the stock of Coinbase from $70 to $45. The bank said that one of the reasons was that there was a long period of turbulence in the cryptocurrency market and this will negatively impact the company. The recent crypto fall-out has been difficult for Coinbase to handle. The stock has been unable in the past 20 days to break out of its current trading range, which is (NYSE: COIN).
Coinbase Sinks as Goldman Downgrades to Sell Rating
Earlier in the month, Coinbase announced it will lay off 1,100 employees in an effort to cut costs. The restructuring will eliminate 18% of employees and bring the total headcount back to Q1 levels. Analysts believe that even these measures won't solve their current financial issues.

Over the past 10 weeks, investors have been picking up puts and fewer calls. This is a sign that people are anticipating the stock will decrease in value.

Brian Armstrong, CEO at Coinbase, reminded investors that a recession could lead to extended crypto winter. Past winters have seen trading revenue decline significantly.

Investors may want to stay away from investing in Coinbase stock due to the worsening situation.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2022-06-27 13:32

avatar
About the Author
Staff or Guest writer for The Dog of Wall Street.


buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

Looking Ahead to Tesla's Earnings: What Can We Expect?
Is there any stock that has been more talked about than Tesla (NASDAQ: TSLA) as of late? It’s a company that is always in the spotlight but the stock is under some heavy scrutiny this year and deservedly so.
By Mike Sakuraba | 1 month ago

2 Stocks to Load Up On During This Correction
Another volatile week for markets and investors are starting to feel a little uncomfortable.
By Mike Sakuraba | 1 month ago

2 Earnings to Watch for Next Week
This article is merely meant to talk about two companies that I’ll have my eyes on for earnings.
By Mike Sakuraba | 1 month ago

2 Stocks That Could Explode in Q2
Here are two stocks that I think could explode in the second quarter.
By Mike Sakuraba | 1 month ago

2 Trillion Dollar Companies in the Making
One thing for certain about these two companies is that I see the potential in how they can grow.
By Mike Sakuraba | 1 month ago

Is Tesla Back? Has TSLA Stock Finally Bottomed?
Tesla Stock Analysis: Robo Taxis to the Rescue?
By Mike Sakuraba | 2 months ago

2 Stocks to Buy During an April Pullback
Here are 2 stocks I’d buy during an April pullback.
By Mike Sakuraba | 2 months ago

TSM Stock: Is This The True Winner of the AI Race?
TSM’s stock has gained nearly 40% this year which is about half of NVIDIA has returned.
By Mike Sakuraba | 2 months ago