why does coinbase stock keep going down

Full Answer

Should you buy Coinbase stock following recent sell off?

This was short-lived, and the stock has been on a downward spiral, falling over 20% since December 2021. Let's dig in and see if now is an opportune time to buy Coinbase on the dip. Despite the ...

Is now a good time to buy Coinbase stock?

Until then, Coinbase stock looks like an incredible buy. In fact, I feel so strongly about this opportunity that I picked up a few Coinbase shares just before the holidays. The stock is another 12% cheaper now, giving you an ever more inviting point of entry here.

Will Coinbase refund if your account is hacked?

While you’ll be eligible for a refund from Coinbase in case the company’s error caused unauthorized transactions from your account, you won’t receive a refund if you shared your account info with a third party. Coinbase might lock your E-Money Wallet temporarily.

Can Coinbase stock Turbocharge Your portfolio?

The vast majority of companies are privately held – not just anyone can decide to invest in them ... corporate purposes should help to turbo-charge growth, but it comes at the cost of share ...

Why is Coinbase stock dropping?

Shares of Coinbase closed down 26% on Wednesday after the company reported shrinking revenue and declining users. Coinbase said Tuesday that revenue fell 27% year-over-year to $1.17 billion, which was below Wall Street's projected $1.48 billion. It also said it lost $430 million in the first quarter.

Is Coinbase going to collapse?

“We have no risk of bankruptcy, however we included a new risk factor based on an SEC requirement called SAB 121, which is a newly required disclosure for public companies that hold crypto assets for third parties.

Is Coinbase losing market share?

The firm's market value has shrunk by about $51 billion since the end of its first day of trading last April. Coinbase shares fell to an all-time low earlier in May, and even after recovering somewhat are still down about 80% from their debut. That's a steeper drop than Bitcoin's 53% slump in the same period.

Is Coinbase stock a good buy?

So, is it time to buy Coinbase stock following this big sell-off? The stock currently trades at just about 4x our consensus 2022 revenue, which is not exactly a rich valuation for a highly profitable and futuristic stock with solid long-term earnings potential.

Is my money safe in Coinbase?

While it is never 100% safe to keep your money on any online exchange, Coinbase has one of the safest web wallets you can use since it holds 98% of its assets in offline cold storage that cybercriminals cannot access.

What happens to my crypto if Coinbase shuts down?

Like many crypto platforms, Coinbase offers a custodial wallet service. This lets users leave their digital assets on the exchange rather than moving them to an external crypto wallet. However, according to the Coinbase filing, if the company goes bust those assets could be subject to bankruptcy proceedings.

What is the future of Coinbase stock?

Stock Price Forecast The 21 analysts offering 12-month price forecasts for Coinbase Global Inc have a median target of 100.00, with a high estimate of 290.00 and a low estimate of 45.00. The median estimate represents a +81.88% increase from the last price of 54.98.

Is Coinbase stock a good long term investment?

Coinbase is a leveraged bet on the crypto industry And Coinbase has an 11.2% share of the crypto market, a figure that has steadily increased over time. As the crypto market increases in value throughout the next decade, Coinbase will continue attracting a good chunk of those assets.

Is Coinbase good for long term investing?

Coinbase is a good service to use for long-term investing as long as you have more than a basic understanding of cryptocurrency. At an advanced level, you will be able to use Coinbase's Pro Account to maximize your investment in the long term with the extra features that the service offers.

Is Coinbase a good investment 2022?

Unfortunately, the losses Coinbase reported in the first quarter of 2022 are probably going to get worse before they get better. Management warned investors that the company needs to continue investing heavily to help promote the entire crypto economy.

Which COIN is best to invest now?

This article features the top 10 cryptocurrencies to buy and hold throughout 2022.Ethereum. It is the second-largest cryptocurrency by market capitalization and has been around since 2015. ... Dogecoin. ... Binance Coin. ... Tether. ... Bitgert. ... Polkadot. ... Lucky Block. ... Polygon.More items...•

What's the best crypto to buy right now?

Overall Ethereum and XRP are the best cryptos to buy for this purpose especially when you consider that those projects are among the best in terms of explanation and profitable growth. This means that based on current prices, you can invest in these top innovative ecosystems at a highly attractive entry price.

What happened

Shares of cryptocurrency trading platform Coinbase Global ( COIN -6.55% ) popped in early trading today before ultimately succumbing to the downward pressure of the broader stock market. As of 3:15 p.m. ET, Coinbase stock was down 4%.

So what

Coinbase stock had initially popped this morning, likely because of strength in the cryptocurrency market. For example, Bitcoin surged yesterday, as did many other cryptocurrencies. The majority of the company's revenues come from fees associated with trading cryptocurrencies.

Now what

Day to day, Coinbase stock likely will remain a volatile investment. But bullish investors with a long-term mindset hope that the company can overcome this volatility by building a cryptocurrency business that is larger than what it is right now. And in a blog post from Coinbase today, we were offered a look at one potential growth opportunity.

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What happened

Shares of Coinbase Global (NASDAQ: COIN) have been hammered because of ongoing volatility in the cryptocurrency market. However, today Coinbase is also getting smacked because of a lowered price target from a Wall Street analyst. As of 1:45 p.m. ET, shares of Coinbase were down 2% but had been down almost 8% earlier in the session.

So what

According to The Fly, Mizuho analyst Dan Dolev lowered the price target for Coinbase stock from $300 per share to $220 per share -- a meaningful 27% decrease. While Dolev's rating is technically neutral, as it's always been, the lower price target signals lower confidence to the investors who follow advice from Mizuho.

Now what

In fairness to Dolev, there's good reason to lower near-term expectations for Coinbase. You may have heard that volatility is good for Coinbase's business. That's true in a way -- the company generates most of its revenue from trading fees. Therefore, more volatility leads to increased trading and hence more business for Coinbase.

What happened

Shares of the large cryptocurrency exchange Coinbase Global (NASDAQ: COIN) traded about 2% lower as of 10:50 a.m. ET today after the company reported fourth-quarter and full-year earnings results for 2021.

So what

Coinbase reported earnings per share of $3.32 on total revenue of nearly $2.5 billion in the fourth quarter, easily beating analyst estimates. Trading volume on the platform hit a record high of $547 billion, while assets on the platform grew to $278 billion.

Now what

Coinbase stock is down nearly 50% since going public last April, but the majority of analysts have remained bullish on the company, giving the stock a median price target of $300, implying significant upside from current levels.

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What is Coinbase exchange?

Coinbase is a cryptocurrency exchange that allows users to buy and sell cryptos, including Bitcoin, so any negative news about a major economy regulating cryptocurrencies is likely to send Coinbase's stock reeling. Image source: Getty Images.

Where is Bitcoin mined?

Image source: Getty Images. An estimated 75% of the world's Bitcoin has been mined in China, but the country's government has become increasingly skeptical of cryptocurrencies and is making bigger moves to curb buying and selling of the digital currencies.

Does Alipay crack down on cryptocurrency?

In response to the Chinese government's pressure, all of China's four major banks and one of the country's biggest payment processors, Alipay, said they will help crack down on cryptocurrencies in the country.

Another day, another wild swing in market sentiment

Nicholas has been a writer for the Motley Fool since 2015, covering companies primarily in the consumer goods and technology sectors. He is also the founder and president of Concinnus Financial, a Registered Investment Advisor based in Spokane, WA. He enjoys the outdoors up and down the West Coast with his wife and their Humane Society-rescued dog.

Key Points

Escalating conflict between Russia and Ukraine has been the latest scapegoat for the market's decline.

What happened

Shares of top cryptocurrency exchange Coinbase Global ( NASDAQ:COIN) were down 6.6% today as of the market close. Some cryptos were falling in price again today due to the escalating conflict between Russia and Ukraine.

So what

Coinbase's recent tumble can be chalked up to ongoing risk-off market sentiment rather than geopolitical uncertainty. While Russia is a hotbed for crypto mining and investing (cryptos aren't allowed to be used for financial transactions in Russia, only as an investment vehicle), Coinbase doesn't operate in the country.

Now what

To be sure, lower cryptocurrency prices are a concern for Coinbase. But the company has already proved it does have some built-in resistance to this effect since it charges fees per trade.

Coinbase Outages Are Correlated With Bitcoin Price Swings

In case you aren’t aware of the sheer scale and frequency of Coinbase’s issues, here’s a rundown of every outage it has suffered this year.

Industry-Wide Problem

To cap this review off, Coinbase also reported connectivity or “intermittent” issues on February 20, February 5, and January 24. This makes for a total of 13 reported outages in 2020 (so far), a record that certainly isn’t enviable, and one that may have cost its users a not insubstantial sum of money.

Spread Your Bets

But as rash as new investors may arguably be, they have every right to sell or buy during a swing, so there’s no way Coinbase’s failures can be justified on this basis. And without Coinbase doing much to improve its performance as of its latest outage (November 26), it becomes incumbent on its users to consider trying other exchanges.