Coinbase (COIN) saw a downgrade from Compass Point, shifting its rating to Sell and lowering the price target to $248 from $330 per share. Analyst Ed Engel cited seasonality, weak retail interest, and potential crypto market volatility. Coinbase stock dropped 14% after disappointing earnings, with Subscription & Services revenue missing estimates.

Engel also highlighted increasing stablecoin competition as a threat to Coinbase’s valuation. Interest in crypto treasury stocks like Strategy (MSTR) is declining, limiting potential token purchases. Strategy recently slowed its bitcoin buying spree, impacting BTC buying pressure. Despite the bearish outlook, Coinbase has 19 Buy recommendations, 16 Hold, and 5 Sell ratings.

On the other hand, Bernstein analysts see Coinbase as a “one-stop Amazon” of crypto services, reinforcing an Outperform rating with a $510 price target. They suggest focusing on crypto derivatives and the platform’s comprehensive “everything exchange” vision. The stock’s future remains uncertain amidst changing industry dynamics.

Read more at Yahoo Finance: Coinbase stock hit with analyst downgrade citing ‘limited support’ for current valuation