Coinbase workforce cut does not fix number one problem, says Mizuho - InvestingChannel

Coinbase workforce cut does not fix number one problem, says Mizuho

Mizuho analyst Dan Dolev keeps an Underperform rating on Coinbase with a $30 price target after the company announced another cut to its workforce, lowering it by nearly 20%. While this creates a “near-term filler” for Coinbase’s “dwindling” operating leverage, it does not help fix its number one problem, which is deteriorating volumes amid retail crypto trading fatigue, Dolev tells investors in a research note. The analyst still sees over 30% downside to 2023 consensus sales estimates. Moreover, cutting its workforce may also deepen Coinbase’s ability to generate non-trading revenue as it potentially hurts its efforts to reinvent the “cryptoeconomy,” writes Dolev.

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