Coinbase falls 16.7% in Friday's trading session (1st Aug) alone, and falls further post market.
Why is that?
Coinbase shares sink after trading weakness hits quarterly profit. Coinbase (COIN.O), opens new tab shares slumped and hit their lowest in more than a month on Friday, after the crypto exchange reported a drop in second-quarter adjusted profit due to a slowdown in trading. The stock was last trading at $314, set to wipe out more than $15 billion of market value if current levels hold. It has gained 52% this year as of last close, ranking among the top 15 gainers on the benchmark S&P 500 (.SPX), opens new tab index, which Coinbase joined in May.
Rating Downgrades:
- HC Wainwright sharply downgraded Coinbase (NASDAQ:COIN) to Sell from Buy, saying stock's 150% rally in last three months has outpaced fundamentals and could face pressure ahead of second-quarter results.
- Monness Crespi analyst Gustavo Gala downgraded the stock to Hold from Buy. He pointed to valuation concerns and said COIN needs clearer growth drivers beyond recent crypto milestones.
- Jefferies Financial Group restated a "hold" rating and issued a $260.00 price target (up previously from $210.00) on shares of Coinbase Global in a research report on Tuesday, May 27th.
🚩 Even though COIN had a couple of overweight ratings previously, the recent rating downgrades that it has garnered cannot be ignored. 🚩
After multiple rating downgrades + factoring the fact the COIN has run up too much of late, it may be time to take some money off the table, IMHO.
Stay safe investing, stay green.
@TigerStars @TigerPicks @TigerObserver @RICHIECHEW @JiaDeName @BABY SPACEROCK @LULU ROCKET @nomadic_m @POET @Axe Options
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