- Mad Money host Jim Cramer does not consider Coinbase a good investment.
- A Bank of America analyst reaffirmed his “underperform” rating for Coinbase shares.
- Coinbase’s trading volume in the first quarter was almost flat, worrying investors.
With a recent drop of more than 30%, renowned investor Jim Cramer still does not consider Coinbase Global Inc a good investment.
The Mad Money host is not pleased with the fact that despite recent bank collapses, the cryptocurrency exchange has not benefited from increased inflows. On CNBC’s “Squawk Box,” he said:
“I figured, not to me, but to some people they were the JPMorgan of the business. Therefore, the money goes to JPMorgan. It does not seem. I wouldn’t touch this thing at all.”
The Securities and Exchange Commission issued a notice of Wells to the cryptocurrency business last month for breaching US securities regulations.
Bank of America is bearish on Coinbase shares
Also Thursday, a Bank of America analyst cited CoinGecko statistics to say that Coinbase’s first-quarter trading volume was nearly flat, beating consensus by $24 billion.
Since the beginning of the year, the price of cryptocurrencies has been rising around those dates. This is significant, as a significant part of its global revenue comes from transaction volume.
Jason Kupferberg reaffirmed his “underperform” rating for Coinbase stock while noting a 6.0% drop in app downloads. Since Q3 2020, there were 2.7 million fewer app downloads in Q1. The analyst also said:
“While we don’t see much risk to Coin interest income in Q1, USDC’s market capitalization has fallen 24% since the banking crisis began, which could add risk to interest income estimates in the coming years. quarters.”
