Coinbase Stock ( NASDAQ:COIN )
After a research analyst at Bank of America named Jason Kupferberg downgraded the cryptocurrency exchange Coinbase Global ( NASDAQ:COIN ) to Underperform from Neutral, Coinbase stock fell 3.8% in premarket trading on Wednesday. Kupferberg cited waning crypto transaction volume in Q4 as the market downturn continues.
The pessimistic coverage came in the wake of Coinbase’s ( NASDAQ:COIN ) most recent round of job cutbacks, which took place on Tuesday. The company eliminated 25% of its workforce to navigate the extended bear market. In response, the firm said that its primary operational metrics would align with its projection for 2022 and that it anticipates a quarterly decrease in operating expenditures of around 25% in Quarter 1.
Kupferberg, citing statistics from CoinGecko, stated in a note that the trading platform’s volumes for December were less than half of its Q1-Q3 monthly average of roughly $76 billion. This was the first whole month after competitor FTX (FTT-USD) crashed.
Kupferberg is projecting only $49B/month, which aligns with Coinbase’s ( NASDAQ:COIN ) average for the latter half of 2022. While the mainstream estimates a $67B monthly run-rate for 2023, Kupferberg forecasts $49B/month.
He highlighted that “with increased regulatory uncertainty and consumer confidence shattered due to FTX, we expect retail crypto market participation will remain lukewarm in 2023 and notice that COIN’s retail take-rates are 90x those of institutional.” COIN?...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube