- Mizuho analysts expect Coinbase’s revenue to reach up to $652 million in the third quarter.
- Dan Dolev continues his sharp decline in cryptocurrency stocks to $27.
- Coinbase stock is already down about 35% from its YTD high.
Mizuho on Wednesday lowered its quarterly revenue estimates for Coinbase Global Inc. The company’s shares were down 1.0% at the time of writing.
Dan Dolev shares his thoughts on Coinbase.
Dan Dolev now expects the cryptocurrency exchange to report revenue in the third quarter, about 7.0% lower than previous forecasts. In a research note to clients on Wednesday, he said:
The decline in transaction volume, combined with the expected retail drought, is expected to put a significant burden on sales in the third quarter.
Bitcoin trading volatility last fell to levels four years ago in August.
Mizuho analysts are therefore confident that the Nasdaq-listed company will post revenue about 10% below consensus revenue estimates in the third quarter. Coinbase stock is currently down 35% from its year-ago high.
Coinbase stock price falls to $27
Dan Dolev now expects Coinbase to report revenue in the range of $609 million to $652 million for its third fiscal quarter.
This follows a sharp decline in the platform’s average daily trading volume, which reached around $1 billion in the second quarter but plummeted to $665 million in September.
Accordingly, Mizuho analysts maintained an “underweight” rating on Coinbase stock this morning. His $27 price target suggests a downside of over 60% from here.
His bearish outlook on the stock comes shortly after the cryptocurrency exchange announced that it had secured AML, or anti-money laundering, registration with a Spanish bank (read more). According to Arkham, Coinbase is the largest Bitcoin holder globally.