5 Red Flags for Coinbase Global's Future
Coinbase Global (NASDAQ: COIN), one of the world's largest cryptocurrency exchanges, has burned a lot of investors since its direct listing last April. It started trading at $381 per share, well above its reference price of $250, but now trades at about $50.
Coinbase's stock tumbled for three simple reasons. First, the market's interest in cryptocurrencies waned as rising interest rates drove investors toward more-conservative investments. Second, that same trend caused investors to sell speculative growth stocks like Coinbase. And third, it expects to post a net loss this year, compared to a net profit of $3.6 billion in 2021, as it faces what it calls a "prolonged and stressful scenario."
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Source Fool.com