Famed investor Jim Cramer recently shared his opinion on Coinbase Global Inc’s (NASDAQ: COIN) stock, stating that he wouldn’t touch it. The crypto exchange’s stock has been down nearly 30% in recent weeks.
Cramer is disappointed that Coinbase didn’t get an influx of funds despite the recent banking issues. He said on CNBC’s “Squawk Box”: “I figured that, not to me, but to some people they were the JPMorgan of the business. So, the money goes to JPMorgan. Doesn’t look like it. I wouldn’t touch this thing at all.” Last month, the crypto firm was issued a Wells notice by the Securities and Exchange Commission for violating US securities regulations.
In addition to Cramer’s comments, Bank of America’s Jason Kupferberg also chimed in on COIN, citing the fact that transaction volume was flat during the first quarter. He noted that this was unexpected given the positive trend in crypto prices. Kupferberg backed up his ‘underperform’ rating on Coinbase stock, adding: “While we don’t see much risk to Coin’s 1Q interest income, USDC’s market cap has fallen 24% since the bank crisis started, which could add risk to interest income estimates over the next few quarters.”
Despite the negative outlook, Coinbase stock is still up 90% since the start of the year.
