Morgan Stanley cuts Coinbase price target as profit recovery outlook weakens
Pressure is building on crypto-linked equities after Coinbase's latest earnings added to market concerns following the Binance hack. Morgan Stanley has cut its price target on the exchange to $120 from $258, saying profits may recover more slowly than previously expected.
Highlights
- Morgan Stanley downgraded Coinbase, cutting its price target by 53% from $258 to $120, citing weakened trading trends and crypto market uncertainty after Binance's $6.3 billion hack.
- Coinbase's Q3 net revenue fell 34% year-over-year to $1.16 billion, with net income at $719 million mainly from crypto investments and adjusted net income of $78 million.
- The weaker results and outlook triggered a broader selloff in crypto-linked stocks, with Coinbase dropping over 13% Friday and extending losses by 3.3% to $138 on Monday.
Broker downgrade follows weak trading trends
As reported by Cointelegraph, Morgan Stanley turned bearish on Coinbase on Monday and reduced its price target by about 53%, citing recent trading trends, a softer revenue outlook and broader uncertainty in the crypto market after Binance's $6.3 billion hack.Analyst Michael Cyprys lowered the target to $120 from $258. The bank still describes Coinbase as one of the strongest competitors in crypto, but now expects earnings to rebound at a slower pace than it had forecast, adding pressure to the stock.
Selloff spreads across crypto-linked stocks
The downgrade comes days after Coinbase reported a roughly 34% year-over-year decline in third-quarter net revenue to $1.16 billion on Oct. 29. The company posted net income of $719 million, largely driven by gains on cryptocurrency investments, while adjusted net income was $78 million.That earnings report triggered a broader selloff in crypto-related shares on Friday. Coinbase fell more than 13% in midday trading, while Circle lost more than 9% and Strategy dropped about 8%; on Monday, Coinbase extended those losses, falling more than 3.3% to $138 at the time of writing, according to Yahoo Finance data.
Our earlier article on the Nasdaq 100 (NDX) noted that the index was under short- and medium-term selling pressure, with forecasts pointing to range-bound trading and elevated downside risk unless price reclaimed key resistance levels. It also highlighted the launch of JQQQ, a blockchain-native fund from Janus Henderson and Centrifuge designed to broaden digital access to Nasdaq-100 exposure, a structural development that could support longer-term institutional participation despite near-term weakness.
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