Coinbase (COIN) Marketing Spend Struggles to Lift Volume - Mizuho

Mizuho Securities analyst Dan Dolev maintained a Neutral rating at a $42 per share price target on Coinbase (NASDAQ: COIN) in a note on Wednesday.

Coinbase share losses have continued in the third quarter as marketing spend struggles to lift volume, the analyst stated.

"COIN's trading volume continues to disappoint, and market share continues to dwindle. With two of three months in 3Q behind us, COIN's share amongst the 30 largest exchanges further declined to ~3% vs. ~4% in 2Q ... and 7-8% last November," explained Dolev.

He added that it is occurring despite "considerable spend" on marketing, which does not appear to be moving the needle.

"We are updating our model. Slightly raising 3Q revenue - conservatively modeling stable take rates - but significantly cutting our FY adj. EBITDA estimate to a loss of -$519mn (vs. $52mn prior) amid yet another southward change in management's language around profitability," he concluded.

Coinbase shares are up more than 2% in early Wednesday trading but have fallen over 73% in 2022. Back in March, famed short-seller Jim Chanos said he was short the company, labeling it a "bubble stock."

By Sam Boughedda

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