“There definitely could be even more potential pain coming if volumes continue to be lackluster,” Dolev told Barron’s.ĭolev also thinks a price war may be coming. He now foresees earnings before interest, taxes, depreciation, and amortization, or Ebitda, of $121 million for the year, down from $149 million. Senior fintech and payments analyst, also cut his revenue estimates for Coinbase this year to $3.6 billion from about $4.8 billion. He maintained a “market perform” for the stock and a $75 price target. He warned the company “may need to revisit the size of their reduction in force should the volume environment continue to deteriorate further from here,” according to a note. Kyle Voigt, a Keefe, Bruyette & Woods analyst, said Coinbase’s personnel reductions were expected. “We view head count reduction as a move in the right direction as the company grew head count too aggressively heading into what already started to look like a bear market for crypto,” Todaro said in a note. Todaro also lowered his price target for Coinbase to $89 from $173 but maintained the stock as a “Buy.” Todaro also anticipates second-quarter volumes to decline 39% quarter over quarter and foresees another 7% drop in third quarter volumes on lower retail investor sentiment that he expects to rebound in Q4. John Todaro, a senior research analyst at Needham, lowered his revenue expectations for Coinbase this year to $3.49 billion from $4.54 billion. He maintained his “Buy” rating and has an $80 price objective for the stock. “We continue to view COIN as a long-term winner amid an overly crowded competitive environment for crypto exchanges,” Kupferberg said in a note.
Jason Kupferberg, a Bank of America research analyst, said the job cuts underscore Coinbase management’s ability to be nimble amid a difficult crypto environment, and he believes other cost levers, like marketing, are available to Coinbase if it needs t. Many analysts agreed with Coinbase’s move. On Wednesday afternoon, Coinbase shares were up about 3% to $53. BlockFi, Gemini, Robinhood (HOOD), and have also recently announced layoffs. Coinbase isn’t the only crypto company laying off people.
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