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It’s time to suspend Coinbase shares as the company faces possible scrutiny following the FTX explosion and declining retail trading volume, according to Cowen. He cut the cryptocurrency exchange’s share price from outperform to market performance, citing a difficult macro environment and FTX-fueled concerns about cryptocurrencies unlikely to abate in the near term. “Following further deterioration in December, there is low visibility around a stabilization of retail trading volumes in 2023,” he wrote. It’s low, so it will be raised after FTX.” Coinbase’s share price plummeted 86% in 2022, and has fallen 34% alone since FTX filed for bankruptcy in November. This is partly because stocks are strongly correlated with crypto asset prices, which have fallen significantly. A consistent decline in trading volumes that began more than a year ago is another factor weighing on the stock, with Glagola slated for another year of layoffs to cut costs. Along with the downgrade, Glagola lowered its estimates for his 2023 earnings and adjusted EBITDA below consensus expectations and lowered his price target to $36 per share from $75. The price cut suggests a drop of more than 4% from Wednesday’s close. Stocks fell slightly before the bell. — CNBC’s Michael Bloom contributed to the report
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