Coinbase braces for big news that could impact the stock price.

 

In the midst of the upheaval that has gripped the whole cryptocurrency industry, from which it has only lately begun to recover, the crypto trading platform Coinbase is preparing for yet another round of layoffs, which will have an impact on the company’s stock price.

Coinbase, for example, aims to lay off 950 employees in order to provide “the required operational efficiency to weather downturns in the crypto market and grab opportunities that may materialize,” according to a January 10 announcement by the crypto exchange.

This is Coinbase’s second significant round of layoffs; in June 2022, the company laid off nearly 18% of its employees, or 1,100 individuals. For CNBC’s Squawk Box, CEO Brian Armstrong commented on the development:

With perfect hindsight, we should have done more. The best you can do is respond swiftly when new information becomes available, which is exactly what we’re doing in this case.

According to the release, the sacked employees will get a minimum of 14 weeks of basic pay compensation (plus two additional weeks for each year worked), health insurance, additional support for work visa holders, and other benefits.

Coinbase aims to shut down numerous projects with a poor chance of success to reduce operating expenses by 25% for the quarter ending March 2023.

COIN Reactions to Important Coinbase News


At the time of writing, the premarket price of Coinbase stock (
NASDAQ: COIN) is $37.18, down $0.37 or 0.99% from $37.55. On Monday, January 9, the price of Coinbase stock finished at $38.27 per share, up 15.06% in the previous 24 hours and 4.71% in the last five days, while still attempting to recover from the 10.16% loss on its monthly chart.

It is also worth noting that a support zone ranging around $33.25 has formed as a result of various trend lines intersecting in different time frames.

On the other hand, a resistance zone is currently around $38.28.

Coinbase’s stock has previously reacted in response to developments surrounding the crypto exchange. For example, on January 4, 2023, it rose 12% after Coinbase agreed to a $100 million settlement with the New York Department of Financial Services in connection with compliance measures.

On the other side, a BaFin order linked to Coinbase Germany for violations of the German Banking Act’s “proper business organization law” sent the stock down by more than 10% on November 8, 2022.

Earlier in September 2022, blockchain fintech software developer Varitaseum Capital sued Coinbase for $350 million over a payment and transfer technology patent, lowering COIN shares by more than 8%.

Some, However, are Positive

However, Oppenheimer analyst Owen Lau advised investors to buy Coinbase stock, claiming it could rise to $72 – a massive 80% premium to its current price.

Coinbase has the potential to be one of the few long-term survivors in the crypto space, which makes it appealing.

He sees COIN as a catalyst for crypto innovation that addresses several gaps in the current financial system.

He believes that the company’s financial sheet strength and market share increases are undervalued.

Lau anticipates that subscriptions and services would eventually account for around half of Coinbase’s total income.

The Oppenheimer analyst also anticipates a short squeeze in Coinbase stock once the macro environment settles.

For More Stocks And Investment Related News, Click Here.

 

On this website we use first or third-party tools that store small files (cookie) on your device. Cookies are normally used to allow the site to run properly (technical cookies), to generate navigation usage reports (statistics cookies) and to suitable advertise our services/products (profiling cookies). We can directly use technical cookies, but you have the right to choose whether or not to enable statistical and profiling cookies. Enabling these cookies, you help us to offer you a better experience.