Coinbase Stock Falls Today – Mizuho’s Price Target Cut Takes Away Nearly 40% Of Upside Potential

• Analysts highlighted Coinbase's fourth-quarter loss, its year-over-year revenue decline, and Bitcoin’s bearish sentiment.
• ARK Invest bought 92,854 COIN shares across three ETFs on Friday.
• Monness Crespi analyst Gus Gala downgraded Coinbase to ‘Sell’ from ‘Buy’ with a $120 price target last week.

Coinbase (COIN) shares dipped on Tuesday amid Mizuho’s price target cut.

Dan Dolev, an analyst at Mizuho, lowered Coinbase's price target from $280 to $170, eroding nearly 40% of its upside case, according to TheFly. He kept a ‘Neutral’ rating on the shares and said lower Bitcoin (BTC) prices were the reason behind the price target reduction. 

In a research note to investors, the analyst stated the company's fundamentals are under pressure because the "crypto winter" continued to hurt profits in the fourth quarter. The firm believes Robinhood (HOOD) remains in a stronger position than Coinbase.

Coinbase (COIN) traded near $161, down 1.87% on Tuesday. On Stocktwits, retail sentiment around COIN remained in ‘extremely bullish’ territory, accompanied by ‘extremely high’ chatter levels over the past day. 

ARK Buys The Dip In Coinbase Despite Earnings Miss

The company's earnings per share stood at $0.66, below Wall Street's $1.05-per-share profit estimate. However, while revenue fell 22% from the previous year to $1.78 billion, it was mostly in line with Wall Street's expectations. 

Monness Crespi analyst Gus Gala downgraded Coinbase to ‘Sell’ from ‘Buy’ with a $120 price target last week.

Meanwhile, Cathie Wood's ARK Invest revealed on Friday that it had purchased Coinbase (COIN), increasing exposure across three ETFs. 

A total of 92,854 shares of COIN were acquired by the three funds: ARKK acquired 66,545 shares, ARKW acquired 16,832 shares, and ARKF acquired 9,477 shares. 

With Coinbase serving as a high-beta proxy for crypto market activity, ETF-driven flows, and institutional custody growth, the cross-fund purchase suggests a portfolio-level decision to increase exposure to crypto-linked equities. This puts ARK in a position to profit from a possible recovery in crypto trading volumes and broader adoption of digital assets.

Read also: Bitcoin Lender Says ‘World Order Has Broken Down,’ Positions BTC As Structural Hedge

For updates and corrections, email newsroom[at]stocktwits[dot]com

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