COIN - Coinbase: Downside Overshadows Optimism
2024-04-01 09:30:00 ET
Summary
- Coinbase's stock has experienced significant volatility since going public, with a 38% decline in its first year as a public company.
- The stock has recently bounced back, driven by renewed interest in cryptocurrencies and regulatory approval of Bitcoin Exchange-Traded funds.
- Coinbase is a crypto-driven business, and at current levels, it appears overstretched and trading in overbought territory, exposing it to a massive downside risk.
The Coinbase Rollercoaster
Coinbase's ( COIN ) life as a public company has been a rollercoaster. It went public in 2021 at $250 a share, after which it experienced a surge to record highs of $350 a share. However, its pump was short-lived as the stock crashed, tumbling in line with the heightened volatility that has come to be associated with cryptocurrency-linked asset classes. Its first year as a public company was a disaster, as the stock was down by 38%....
Coinbase: Downside Overshadows Optimism