Coinbase stock has fallen 87% from its 52-week high, What should you do now?

What’s happening with Coinbase?

• Coinbase stock has fallen nearly 87% from its recent peak tracking the steep decline in crypto prices and reduced customer trading activity.
• Coinbase also laid off 18% of its workforce earlier this month to save on costs.

Recent Analyst Action

• Goldman Sachs downgraded the stock to ‘Sell’ with target price of $45 a share due to ongoing fall in crypto prices and trading volumes.
• Ratings agency Moody’s downgraded rating on Coinbase’s corporate debt due to substantially weaker than expected revenue.

What should you do?

Most analysts have retained ‘Buy’ recommendation on the stock but lowered the target price.

Future Outlook

• Coinbase is looking to expand in Europe to ramp up growth and compete with Binance, FTX and Crypto.com.
• Coinbase is also hoping to diversify into new products, including NFTs and interest-like rewards known as staking.