Coinbase Falls as Mizuho Slashes Price Target
2022.04.05 18:36
By Sam Boughedda
Investing.com — Coinbase Global Inc (NASDAQ:COIN) fell 4.9% Tuesday after Mizuho Securities cut its price target on the stock to $190 from $220 and maintained a Neutral rating.
Dan Dolev, an analyst at Mizuho told investors that the company launching its NFT marketplace in 2022 could be costly.
The analyst said that in a year in which Coinbase’s adjusted EBITDA losses could be $500M, he questions the thinking behind chasing NFTs, “especially as the NFT hype seems to wane.”
“Our analysis of internet searches shows interest in NFTs has dramatically declined from its highs earlier this year,” Dolev wrote.
He estimates that the company could spend approximately $300 million on building the NFT platform. The price target was slashed based on “lower-than-expected 1Q volumes and medium-term pressure.”
