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April 22, 2021, 12:54 p.m. EDT

Coinbase stock falls toward 4th-straight loss, after first non-bullish analyst starts coverage

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By Tomi Kilgore

Analyst Dan Dolev at Mizuho broke ranks with his Wall Street peers, as he became the first to initiate coverage of Coinbase Global Inc. /zigman2/quotes/225893452/composite COIN -2.73% with something other than the equivalent of a buy rating. Dolev set a neutral rating for the cryptocurrency exchange, and a stock price target of $285, which was 6.6% below current levels. The stock fell 2.2% in midday trading toward a four-day losing streak. Dolev said that while Coinbase was a "major share gainer," the risk of pricing pressure offsets opportunities surrounding the stock. "Over time, COIN's fees may face downward pressure from competing platforms following the footsteps of zero-commission stock trading, because platforms like PayPal and Cash App primarily use crypto trading products as engagement tools," Dolev wrote in a note to clients. "In contrast, COIN relies on commissions for the vast majority of its revenue." He said a survey of several hundred bitcoin /zigman2/quotes/31322028/realtime BTCUSD +0.01% traders showed "significant user overlap" among Coinbase, PayPal Holdings Inc. /zigman2/quotes/208054269/composite PYPL -1.10% and Square Inc.'s /zigman2/quotes/205989440/composite SQ +0.29% Cash App, and 55% of those surveyed consider "low transaction fees" as the second-most important quality of crypto trading app platforms, behind just "security." Coinbase's stock has lost 10.8% this week, while bitcoin has declined 10.6% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.07% has slipped 0.2%.

/zigman2/quotes/225893452/composite
US : U.S.: Nasdaq
$ 273.00
-7.66 -2.73%
Volume: 5.05M
May 5, 2021 4:00p
P/E Ratio
168.72
Dividend Yield
N/A
Market Cap
$55.91 billion
Rev. per Employee
$1.02M
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/zigman2/quotes/31322028/realtime
US : CoinDesk
56,861.04
+6.63 +0.01%
Volume: 0.00
May 5, 2021 5:46p
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/zigman2/quotes/208054269/composite
US : U.S.: Nasdaq
$ 247.40
-2.76 -1.10%
Volume: 9.40M
May 5, 2021 4:00p
P/E Ratio
69.95
Dividend Yield
N/A
Market Cap
$293.75 billion
Rev. per Employee
$808,830
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/zigman2/quotes/205989440/composite
US : U.S.: NYSE
$ 231.87
+0.68 +0.29%
Volume: 3.77M
May 5, 2021 4:00p
P/E Ratio
593.63
Dividend Yield
N/A
Market Cap
$105.10 billion
Rev. per Employee
$1.73M
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/zigman2/quotes/210599714/realtime
US : S&P US
4,167.59
+2.93 +0.07%
Volume: 1.76B
May 5, 2021 5:13p
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