5 Stocks Losing Value Following Analyst Ratings Downgrades

1. Coinbase Global, Inc. (NASDAQ:COIN)

Number of Hedge Fund Holders: 46

Shares of Coinbase Global, Inc. (NASDAQ:COIN) fell for two straight days after Goldman Sachs downgraded the cryptocurrency exchange platform from “Neutral” to “Sell” on Monday, June 27, 2022.

Goldman Sachs analyst Will Nance thinks the current trading volumes indicate a further decline in revenue. Nance expects a year-over-year drop of 61 percent in Coinbase revenue for 2022. He also cut his price target for Coinbase Global, Inc. (NASDAQ:COIN) from $70 per share to $45 per share, citing continuously dropping crypto prices.

Separately, Memphis-based Longleaf Partners Fund talked about Coinbase Global, Inc. (NASDAQ:COIN) in its fourth-quarter 2021 investor letter, stating:

“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Coinbase is a prime example.”

You can also take a peek at Billionaire Richard Chilton Is Selling These 10 Tech Stocks and 6 Defensive Stocks to Buy in 2022 According to Seth Klarman.

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