Goldman Sachs downgrades Coinbase shares, predicts 60% revenue drop

Shares of Coinbase fell 9% on Monday to $56.88 after Goldman Sachs downgraded the company from “neutral” to “sell” and lowered its price target from $70 to $45.

Analyst Will Nance also wrote in a note to investors that the company’s headcount “needs further cuts”, even as recently as with Coinbase. saying it will fire 18% In addition, the number of its employees draw offer from incoming employees.

“We believe that current crypto asset levels and trading volumes indicate a further decline in COIN’s revenue base,” Nance wrote, adding, “Year-over-year revenue could decline by more than 60%.

In investment terms, a “neutral” rating is neither bullish nor bearish, and a “sell” recommendation indicates that the shares are likely to depreciate.

Coinbase, the largest cryptocurrency exchange in the US, started business On Nasdaq in April 2021. COIN $381 in shares. has fallen by 85% from First price in April 2021 As bitcoin and other digital assets have also declined, the company receives commissions from fewer trades that result.

The downgrade from Goldman comes just days after Moody’s downgrade Coinbase’s corporate debt, writing in a note: “today,S Rating Reflects Action Coinbase,Revenue and cash flow generation have been significantly weakened in recent months due to a sharp drop in crypto asset prices and a decrease in customer trading activity.”

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