Coinbase Stock Analysis:
The average target price for Coinbase Global Inc’s stock, as determined by 22 analysts, is USD 71.13 over the next 12 months. This means that the analysts believe that the stock will reach that price within the next year. The average analyst rating for the company is “Buy”, which suggests that the majority of analysts believe that the stock is a good investment.
Additionally, Stock Target Advisor’s own analysis of Coinbase Global Inc is “Slightly Bullish”, which is based on a combination of positive and negative signals. The analysis has identified some factors that suggest the stock will perform well and some that suggest it may not.
The last closing price for Coinbase Global Inc’s stock was USD 43.79. The stock’s price has seen some fluctuations over the past week, month, and year. Over the past week, the price has risen by +16.15%, over the past month it has risen by +8.82% and over the past year it has dropped by -81.54%. This suggests that the stock has been volatile and its price has changed significantly over the past year.
Coinbase Slashes Job on Outlook
Coinbase Global Inc., a cryptocurrency exchange based in the United States, is discontinuing the majority of its activities in Japan as part of a strategy to modify its foreign investment in the midst of a downturn in the digital asset market.
The change comes while the company is in the process of laying off the equivalent of twenty percent of its staff worldwide. These are the most recent layoffs at the company’s headquarters in San Francisco. Coinbase is decreasing its presence in Japan at the same time as the government is relaxing some of its regulations regarding cryptocurrencies. This has prompted rival Binance, the world’s largest digital asset exchange, to begin the process of applying for a license to operate in Japan once again.
In an interview that took place on Wednesday, Nana Murugesan, vice president for business development and international, stated that “we’ve decided to wind down the majority of our operations in Japan,” which resulted in the elimination of most of the responsibilities in the company’s Japan organisation. When asked if the Japan unit could be sold, he responded that Coinbase would not provide a statement regarding any potential merger and acquisition activities.
The digital asset business has been pummeling as a result of a plunge in token prices of $2 trillion from their peak in 2021 as well as a slew of failures, the most recent of which being the insolvency of the FTX exchange. Because of this, a number of crypto enterprises have had to reduce their workforce.
Coinbase is laying off around 950 people across the world. Chief Executive Officer Brian Armstrong stated that this action is necessary to weather the slump in the industry. He also mentioned that numerous projects that had a reduced likelihood of being successful will be terminated.
Murugesan did not provide a statistic to indicate how many employees in Japan are affected, but he did say that just a small number are needed to guarantee the safety and security of customer assets.
He also mentioned that Japan’s Financial Services Agency is still in negotiation with Coinbase, thus the company is in a transitional phase at the moment. Murugesan stated that Japan Chief Executive Officer Nao Kitazawa is participating in those discussions and that the subsequent measures for him will be determined after the event.
Coinbase had previously formed a partnership with Mitsubishi UFJ Financial Group Inc. to establish a cryptocurrency exchange in the Japanese market by the year 2021. Since the company’s inception, one of its primary goals has been to expand its operations into new international markets. (https://editorialrm.com) CEO Tim Armstrong has stated that “international expansion is really key to our aim of spreading economic freedom in the world.”
Obstacles to Expanding
In its pursuit of worldwide expansion, Coinbase has run across a number of obstacles. The previous year saw the failure of a prospective deal to acquire the Brazilian cryptocurrency brokerage 2TM Participacoes SA. As a result of pressure from India’s central bank, cryptocurrency exchange Coinbase suspended its purchasing business in that country.
Murugesan stated that Coinbase is still dedicated to expanding into new markets around the world and referred to the recent events in Japan as “an example of right-sizing.” He stated that the corporation is “ready to make hard decisions” in order to ensure that their investments are in line with the opportunities presented by the local market.
An earlier statement from a spokeswoman for the Japan unit stated that “no decisions have been made at this time beyond the decrease in employees,” while also adding that “we are carefully reviewing all options.”
Coinbase made the announcement in June that it would be laying off 18% of its workforce, which is about equivalent to 1,200 employees in total. In November, it terminated another sixty employees altogether.
