Is Coinbase Losing its Shine? Investor Jim Cramer Thinks So
The value of Coinbase Global Inc (NASDAQ: COIN) has recently fallen by almost 30%, but Jim Cramer, a well-known investor, does not consider it a good investment opportunity.
Cramer expressed his disappointment with the crypto exchange’s lack of inflows during the recent bank failures on CNBC’s “Squawk Box.”
He thought that Coinbase would have benefited from the failure of other banks and attracted more investors, but it did not happen. Therefore, he would not invest in it.
Coinbase recently received a Wells notice from the Securities and Exchange Commission for violating US securities laws. Despite this, Coinbase stock is still up 90% year-to-date.
On Thursday, a Bank of America analyst reported that Coinbase’s transaction volumes remained flat during Q1 and that the company missed consensus estimates by $24 billion.
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This is notable because transaction volume contributes significantly to its revenue. Jason Kupferberg also reported a 6% decline in app downloads and reiterated his “underperform” rating for Coinbase stock.
He added that USDC‘s market cap had fallen 24% since the bank crisis began, which could add risk to interest income estimates over the next few quarters.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
