Compass Point has reduced its price target for Coinbase from $266 to $230, citing slower-than-expected revenue growth in emerging sectors such as tokenized stocks and prediction markets. Despite recognizing the long-term potential of these products, with projected incomes of $230 million and $210 million respectively, the firm cautions that significant returns may take years to materialize. Following the announcement, Coinbase's stock fell over 5% to $252, underperforming compared to Robinhood, which has seen a 215% increase this year. Analysts also highlighted Coinbase's potential reliance on market maker rebates, akin to strategies used in altcoin trading.
Compass Point Lowers Coinbase Price Target to $230
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