Goldman Sachs recommends selling Coinbase stock and this may be a chance for retail investors to earn alittle of their profits back. The stock will go down in value creating a chance for bear traders.
This comes as a treatment to the loss of trust in digital assets companies by already established financial conglomerates.
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Goldman Sachs downgraded its rating on Coinbase (COIN) to "Sell" from "Neutral," and also cut its price target on the stock to $45 from $70, in a recent research note. Analysts at Goldman Sachs attributed the downgrade to the recent crypto crash. The investment bank expects Coinbase's revenue to slump by around 61% in 2022. A bulk of Coinbase's revenue comes from the fees it earns from retail traders, the hardest hit by the bear market and rising inflation in the US.
Coinbase's attempts to get out of exchange trading also failed. The firm's recently launched NFT marketplace has generated just over $1 million in sales in the month since its launch.
