Coinbase shares traded at $61 shortly after the open on Thursday. Wells Fargo stated that shares of the exchange were likely to fall more due to fears about competition and profitability.
After Wells Fargo’s profitability warning, Coinbase (COIN), shares plunged more than 9.3% on Thursday as the U.S. markets opened.
According to CNBC , the multinational financial services company claimed that rising competition and macro pressures would cause COIN to be sold.
Wells Fargo puts $57 price target on coinbase Stock
According to NASDAQ data (via TradingView), Coinbase shares traded at \$61.05 within minutes of the opening bell.
Coinbase was set at $57 by Wells Fargo, with analyst Jeff Cantwell saying that the current environment will cause downward pressure. Cantwell also pointed out the drop in retail prices as a factor in the downgrade.
Coinbase was under severe pressure during the summer. Cathie Wood, Ark Invest dumped COIN shares valued at \$75 million. Although the price did rebound following the announcement of its partnership with BlackRock, it appeared that its earnings were below average. The exchange stated that it expects to underperform the third quarter.
There has been increased competition from other exchanges such as Robinhood, which entered the self-custody space this week, and Binance. US is cutting spot pairs fees to increase the pressure on the exchange, as North American volumes continue to fall.