Coinbase Shares Decline By 9% Following Profitability Warning From Wells Fargo

Coinbase (COIN) shares plunged by more than 9.3% as U.S. markets opened on Thursday after Wells Fargo issued a profitability warning.

The multinational financial services company claimed rising competition and macro pressures will hurt the publicly traded crypto exchange, dubbing COIN a sell, according to a CNBC report

Wells Fargo set a price objective of $57 for Coinbase

With analyst Jeff Cantwell suggesting that the current difficult environment will put downward pressure on the exchange, Wells Fargo set a price objective of $57 for Coinbase. Cantwell also cited the downgrade’s contributing cause as the reduction in retail pricing.

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Throughout the summer, Coinbase has faced pressure, and Cathie Wood’s Ark Invest dumped COIN shares valued at about $75 million at the time. Even if the price did increase once BlackRock’s alliance was announced, the company’s earnings seemed underwhelming. The exchange stated that it anticipated third-quarter underperformance.

Competition from competing exchanges, like Binance and Robinhood, which this week entered the self-custody wallet market.

As volumes on North American platforms keep declining, the US lowering fees on several spot pairs has put more pressure on the exchange.

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