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We recently compiled a list of the These 10 Firms Were Heavily Hit on Friday. In this article, we are going to take a look at where Coinbase Global, Inc. (NASDAQ:COIN) stands against the other stocks.
Wall Street’s main indices finished mixed on Friday, with the tech-heavy Nasdaq emerging as the sole gainer, rallying 0.41 percent. The Dow Jones, for its part, decreased by 0.37 percent, while the S&P 500 was little changed, dipping 0.01 percent.
Ten companies mirrored a mostly pessimistic broader market.
To come up with this list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
A shot of someone securely accepting crypto assets as payment, showcasing the company's payment solutions.
Coinbase Global, Inc. (NASDAQ:COIN)
Coinbase Global, Inc. (NASDAQ:COIN) saw its share prices decline by 7.98 percent on Friday to end at $274.31 each after an investment research firm slashed its target price for the company amid expected headwinds in its revenue model.
On Friday, CFRA analyst Michael Elliott lowered his price target for Coinbase Global, Inc. (NASDAQ:COIN) by 3 percent to $325 from $335 previously, while maintaining a “hold” rating.
According to the analyst, Coinbase Global, Inc. (NASDAQ:COIN) benefits from significant regulatory tailwinds, but also underscored concerns about its revenue model, with 61 percent of total revenue being transactional, which ties it closely to the fluctuating prices of underlying cryptocurrency tokens.
According to Elliott, the revision reflects a slight decrease in the 12-month target based on an enterprise value-to-sales ratio of 10.7 times CFRA’s 2025 sales estimate.
Despite the numbers, CFRA raised its earnings per share target for the company to $6.32 for 2025 and introduced a $7.06 EPS target for 2026.
Overall COIN ranks 7th on our list of the stocks that crashed on Friday. While we acknowledge the potential of COIN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for other AI stocks that are as promising as COIN but that trade at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.