Coinbase hit with 50% price target cut as post-earnings rout deepens

What happened

Morgan Stanley turned bearish on Coinbase and cut analyst Michael Cyprys’s price target from $258 to $120, about 53%, citing recent trading, a softer revenue outlook and crypto-market uncertainty. The move followed Coinbase’s report of a 34% year-over-year decline in third-quarter net revenue to $1.16 billion.

Confirmed

Global impact / market context

A lower profit outlook can weaken expectations for Coinbase’s future earnings and make its shares less attractive to investors. Coinbase’s revenue decline adds to that concern, while its reported net income was largely driven by cryptocurrency investment gains and adjusted net income was much lower.

Analyst inference

The article describes pressure across crypto-linked shares after Coinbase’s earnings and the Binance hack: Coinbase, Circle and Strategy all fell on Friday, and Coinbase extended losses on Monday. That points to uncertainty affecting both exchange revenue expectations and investor appetite for related stocks.

Analyst inference

What to watch

1. Watch Coinbase’s next revenue and earnings updates for evidence that trading-related income and profits are recovering more slowly than investors previously expected. Analyst inference
2. Track whether Morgan Stanley changes its $120 price target or outlook; the article says the bank still considers Coinbase one of crypto’s strongest competitors. Analyst inference
3. Observe whether crypto-market uncertainty linked in the article to Binance’s $6.3 billion hack continues to weigh on trading trends and crypto-linked share prices. Analyst inference

Evidence

• cointelegraph.com