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Seeking Alpha 2022-06-27 12:13:36

Coinbase Global stock dips after Goldman downgrades to Sell

Coinbase Global (NASDAQ:COIN) stock is dropping 5.1% in Monday premarket trading after Goldman Sachs analyst William Nance downgraded the cryptocurrency exchange's stock to Sell from Neutral on the expectation that its revenue decline will speed up in the second half of the year. "We believe current crypto asset levels and trading volumes imply further degradation in COIN's revenue base, which we see falling ~61% Y/Y in 2022, and ~73% in the back half of the year," Nance wrote in a note to clients. The job cuts that Coinbase (COIN) made earlier in June won't be enough, as they only bring its headcount back to Q1 2022-end levels and resulted in COIN moving to the low end of its previous expense guidance. "We believe COIN will need to make substantial reductions in its cost base in order to stem the resulting cash burn as retail trading activity dries up," Goetsch said. In addition,

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