Coinbase Stock Climbs Despite Sell Rating From H.C. Wainwright
Coinbase (COIN) shares rose more than 4% on Thursday, defying a rare downgrade to sell from H.C. Wainwright, which warned of weak spot trading activity and stretched valuations heading into second-quarter earnings.
Analyst Mike Colonnese reversed his previous buy rating, citing a slowdown in trading volumes across centralized exchanges—something he believes will pressure Coinbase’s transaction-driven revenue, the company’s primary income source.
“Coinbase remains a best-in-class crypto platform, but the ~150% rally since April appears disconnected from short-term fundamentals,” Colonnese wrote.
He still expects strength in Coinbase’s subscription and services business, including staking and custody, but flagged overvaluation as a key concern.
The downgrade runs counter to more optimistic peers. Barclays expects a soft quarter but holds a neutral rating, while Oppenheimer maintains an outperform call.
Despite the bearish note, COIN gained on the day, lifted by strength in crypto markets. Bitcoin added another 2%, notching a fresh all-time high above $113,000.
