Coinbase Global Inc.’s list of bears is growing long. Morgan Stanley came out swinging against the cryptocurrency exchange this week, slashing revenue estimates and saying confidence in the earnings recovery has deteriorated.
The analyst cut Coinbase’s second-quarter revenue estimate to $1.3 billion from $1.6 billion and lowered the third-quarter forecast to $1.4 billion from $1.8 billion. Morgan Stanley also reduced its full-year revenue projection to $5.6 billion from $6.8 billion, citing weaker trading volumes and declining retail user engagement.
Earnings recovery is now seen as less certain, with Morgan Stanley warning that macroeconomic headwinds and regulatory scrutiny could further dampen growth. The firm maintained an underweight rating on the stock, which fell 4.2% in premarket trading.
Coinbase did not immediately respond to a request for comment. The company’s shares have dropped more than 60% year-to-date amid broader crypto market turmoil.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing