Coinbase Tumbles to Record Lows as Crypto Meltdown Deepens – Yahoo Finance
(Bloomberg) — Coinbase Global Inc. shares and bonds plunged to new lows, signaling investor skepticism about the prospects of the crypto exchange in a worsening bear-market.
Most Read from Bloomberg
Don’t Bother Paying Off Student Loan Debt Right Now, Advisers Say
Nike Escalates StockX Feud, Says Site Is Selling Fake Shoes
Highest Inflation in America Is Punishing a Texas Town and Its Residents
Stocks Slide as US Curve Flattens After Hot CPI: Markets Wrap
Ukraine Latest: US Looks at Sending New, Tank-Busting Drones
Shares plunged as much as 31% to $50.15 on Wednesday, a far cry from its first-day closing price of $328.28 when it went public last April. Its bonds also plunged, trading in line with some of the highest-risk junk-rated notes.
Coinbase is “unlikely to return to recent levels of profitability in the near term absent a significant increase in crypto prices or volatility,” Will Nance, an analyst at Goldman Sachs Group Inc. wrote in a note. “We believe COIN’s stock will struggle to outperform in the near term.”
Adding to the concern, cryptocurrencies underpinning some of the most popular decentralized finance protocols tumbled Wednesday as the collapse of the TerraUSD stablecoin triggered a stampede out of many of the digital-asset market’s most popular tokens.
The company reported lower-than-expected revenues yesterday, and warned trading volume and monthly transacting users in the second quarter is expected to be lower than in the first. A new risk disclosure in its filing triggered concerns among some users about the safety of their crypto assets held in custody by the company in the event of a bankruptcy.
Brian Armstrong, Coinbase’s chief executive officer, took to Twitter to clarify that there is “no risk of bankruptcy” and users’ funds are safe, while apologizing for not communicating proactively about the disclosure.
Bitcoin fell below $30,000 and touched its lowest level since June, while the TerraUSD stablecoin continued its downward spiral. Coinbase Chief Financial Officer Alesia Haas said yesterday that the company sees “bear-market conditions” but can still afford to make 2022 “an investment year.”
(Updates the price declines.)
Most Read from Bloomberg Businessweek
Mexico’s Hottest Resort Towns Struggle With Covid Travel Boom
What Happened When a Wall Street Investment Giant Moved to Nashville
Don’t Expect Chinese Stimulus to Save the Global Economy
Major League Soccer Threatens to Replace the NHL as One of the Big Four US Sports
Inflation Is So Bad Democrats Want Biden to ‘Do More’ for Midterms
©2022 Bloomberg L.P.
Shares of the artificial intelligence lender Upstart Holdings (NASDAQ: UPST) traded more than 16% lower as of 11:14 a.m. ET today after it received yet another downgrade from Wall Street. Wedbush analyst David Chiaverini maintained his underperform rating on Upstart but lowered his price target from $20 to $15 per share. The lower price target comes just a week after Chiaverini lowered his price target on Upstart from $35 to $20.
When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett buys or sells shares of a company, Wall Street and investors tend to pay close attention. Since becoming CEO in 1965, he's overseen the creation of more than $680 billion in shareholder value and delivered an average annual return of 20.1% for Berkshire's Class A (BRK.A) shareholders (himself included).
In this article, we discuss 6 stocks that Warren Buffett is selling in 2022. If you want to see more stocks that the billionaire sold, click Warren Buffett is Selling These 3 Stocks in 2022. Warren Buffett, the chief of Berkshire Hathaway, is perhaps the most renowned financier in the investment world, with decades of […]
Yahoo Finance Live anchors discuss second-quarter earnings for Deere.
It’s been a terrible week in an awful year for the stock market. Walmart (WMT) Target (TGT) and Tencent (HK:700) each reported disappointing results to add fuel to the worries about interest-rate hikes and quantitative tightening. Over the last six weeks, equity redemptions have totaled $46 billion, versus $91 billion when the COVID outbreak first became apparent, according to Sean Darby, chief equity strategist at Jefferies.
Like many tech and fintech stocks this year, the Berkshire Hathaway-backed Brazilian digital bank Nu Holdings (NYSE: NU) has seen its stock price struggle and is down more than 61% this year. Nu is a major disruptor in the Latin American banking space, first offering a credit card with no annual fees and then building out a suite of banking products from there. Nu has amassed close to 60 million customers but in the past has gotten questions regarding its high valuation and path to sustainable profitability.
Shares of Pfizer (NYSE: PFE) were up 2.5% as of 11:35 a.m. ET on Friday after jumping as much as 4% earlier in the day. Meanwhile, the stocks of two other COVID-19 vaccine makers were declining. Moderna's (NASDAQ: MRNA) shares were down 4.7%.
In this article, we discuss Michael Burry’s short position in Apple Inc. (NASDAQ:AAPL) and the 5 stocks he is selling in 2022. If you want to skip our analysis of Burry’s history, investment philosophy, and hedge fund performance, go directly to Michael Burry Is Selling These 3 Stocks in 2022. Michael Burry was born on […]
Tesla Inc. shares were poised to close at their lowest since late July, falling more than 8% in midday trading Friday following the allegations of sexual misconduct lobbed against Chief Executive Elon Musk.
The S&P 500 trades below the level that will mark a bear market if losses hold on Friday. In the past, entering bear territory has often meant more weakness ahead.
In this article, we discuss 10 financial stocks that Warren Buffett is buying in 2022. If you want to see more financial stock picks of the billionaire, click Warren Buffett is Buying and Holding These 5 Financial Stocks in 2022. Warren Buffett follows the Benjamin Graham school of thought, picking value plays with prices that […]
Rising interest rates, supply chain constraints and Russia’s invasion of Ukraine are all issues currently plaguing the macro climate. The problem with all three, says Tony Dwyer, Canaccord Chief Market Strategist, is that for each problem there’s “no easy exit strategy.” The tough conditions are likely to persist, then. However, on the plus side, while these issues have sent most corners of the stock market into a tailspin, now investors are presented with stocks for which the term “oversold” re
The discount retailer provided its first-quarter earnings and an update for the year, and Wall Street didn't like what it saw.
Warren Buffett and Berkshire Hathaway invested in Citigroup when it seemed like there wasn't much to look forward to for the megabank.
A potential new Apple device buoyed positive sentiment — but worries about the economy overshadowed the news.
Shares of Deere & Company (NYSE: DE) fell today after the company reported its second-quarter results. Despite beating Wall Street's expectations for the company's bottom line, investors were disappointed that revenue fell below analysts' consensus estimate. Deere reported diluted earnings of $6.81 per share in the quarter, up from $5.68 in the year-ago quarter, which easily beat analysts' average estimate of $6.65 per share.
Citi Global Wealth Head of North American Investments Kristen Bitterly joins Yahoo Finance Live to discuss the decline in equity and fixed income markets, rising rates, bond yields, and inflationary pressures.
Elon Musk got defensive over a meme suggesting he may be spending a little too much time on Twitter and not enough time on his electric vehicle company.
The overall stock market has been struggling with the Dow Jones Industrial Average heading for its eighth straight losing week. For retail stocks including Target (NYSE: TGT), Costco Wholesale (NASDAQ: COST), and Kohl's (NYSE: KSS), this past week has been the worst of them all. As of Friday midmorning trading, Target shares had dropped a whopping 30% for the week.
U.S. stocks rose on Friday, though the major indexes still headed for steep weekly losses as concerns over the resilience of corporate profits in the face of inflation resurged this week.