Robinhood Steals Coinbase's Crypto Thunder: Analyst Points to Fee Fumbles
Portfolio Pulse from Anusuya Lahiri
Mizuho analyst Dan Dolev reiterated a Sell rating on Coinbase Global, Inc (NASDAQ:COIN) with a price target of $27.00, believing that COIN is losing its share in retail crypto trading to Robinhood Markets, Inc (NASDAQ:HOOD). COIN's higher fees on small-ticket crypto trades and regulatory pressures are cited as potential reasons for the loss in market share.
June 15, 2023 | 5:59 pm
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Mizuho analyst Dan Dolev reiterated a Sell rating on Coinbase Global, Inc (NASDAQ:COIN) with a price target of $27.00, citing loss of retail crypto trading share to Robinhood Markets, Inc (NASDAQ:HOOD) due to higher fees and regulatory pressures.
The Sell rating and lower price target for COIN are based on the belief that it is losing market share to HOOD in retail crypto trading. This is attributed to COIN's higher fees on small-ticket crypto trades and potential regulatory pressures. These factors could negatively impact COIN's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Mizuho analyst Dan Dolev believes that Robinhood Markets, Inc (NASDAQ:HOOD) is gaining retail crypto trading share from Coinbase Global, Inc (NASDAQ:COIN) due to lower fees and not increasing spreads.
The analyst's belief that HOOD is gaining market share from COIN in retail crypto trading is based on its lower fees and not increasing spreads. This could attract more customers to HOOD's platform and positively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100