Coinbase’s Stock Price Rally May Be Short-Lived, Says Analyst
– Coinbase’s stock price has surged from $52 per share on June 15 to $71 per share.
– The rally is driven by a wider recovery in the crypto market, sparked by numerous ETF filings.
– However, analyst Mark Palmer warns that the enthusiasm around Coinbase may not last.
– Palmer highlights the risks the company faces, including potential negative regulatory headlines.
– One risk is decreased revenues from potential cease and desist orders on Coinbase’s staking rewards program.
– Palmer believes the downside risk outweighs the upside of Coinbase’s partnership with BlackRock.
– The analysis overlooks Coinbase’s involvement in the ETF race and its role as a custody provider.
Hot Take: Proceed with Caution
While Coinbase’s stock price has experienced an impressive rally, it may be wise to approach with caution. Analyst Mark Palmer raises valid concerns about potential negative regulatory headlines and decreased revenues from the staking rewards program. While Coinbase’s involvement in the ETF race and partnership with BlackRock may offer some upside, it’s important to consider the broader risks. Investors should weigh these factors before making any decisions regarding Coinbase’s stock.
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