Cryptocurrency

Coinbase Stock Downgraded to ‘Sell’ by Goldman Sachs

Resulting in a drop in the stock’s share price at market open.

Cryptocurrency

Coinbase Stock Downgraded to ‘Sell’ by Goldman Sachs

Resulting in a drop in the stock’s share price at market open.

On Monday, June 27, Coinbase stock ($COIN) was downgraded by Goldman Sachs from a “neutral” rating to a “sell” rating. The new rating resulted in a 7% drop in the stock’s share price at market open, from just over $60 USD to roughly $56 USD.

The crypto exchange selected Goldman Sachs to lead its IPO in 2020 and the investment management firm gave $COIN a “buy” rating in 2021 with a target of $387 USD. The stock now has a price target of $45 USD.

“We believe current crypto asset levels and trading volumes imply further degradation in Coinbase’s revenue base, which we see falling ~61% year-over-year in 2022, and ~73% in the back half of the year,” read the report.

Coinbase saw mixed results in the second quarter, going from being the first cryptocurrency exchange to make the Fortune 500 list to laying off 18% of its staff and rescinding job offers. However, Coinbase CEO Brian Armstrong has affirmed his belief in the platform, which has continually released new products like its recently announced layer 2 integrations, dapp browser and wallet, NFT marketplace, and global think tank.

Goldman Sachs has also been busy in the world of Web3 and digital assets. It was recently reported that the global investment firm is eyeing the assets of crypto lending platform Celsius, with plans to acquire the assets should it file for bankruptcy. Additionally, in late April, Goldman Sachs deployed its very first BTC-backed loan alongside Coinbase.

In other news, SEC Chair proposes co-regulation of crypto with CFTC.

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