Crypto Stock a Downgrade Risk Ahead of Earnings

Core Viewpoint - Coinbase Global Inc is experiencing a decline in stock price ahead of its fourth-quarter earnings report, with investors showing pessimism regarding its Bitcoin-related business [1] Group 1: Stock Performance - Coinbase stock is currently down 6% at $152.73, reflecting investor concerns [1] - The stock has a history of post-earnings declines, finishing lower the day after earnings six times in the last two years [2] - Over the past 12 months, shares have declined by 42.9%, reaching a nearly 10-month low of $145.16 on February 5 [3] Group 2: Earnings Expectations - The average post-earnings move for Coinbase stock has been 7.9% higher during the last eight sessions, while options traders are pricing in a 13.2% swing for the upcoming report [2] - The stock is attempting to find support near $145, which is critical for its recovery [3] Group 3: Analyst Ratings - The stock received a downgrade to "sell" from "buy" by Monness Crespi Hardt, indicating a bearish outlook [3] - Despite the downgrade, 21 out of 32 brokerages covering Coinbase maintain "buy" or better ratings, suggesting mixed sentiment among analysts [3] Group 4: Volatility Metrics - Coinbase's Schaeffer's Volatility Scorecard (SVS) is at a high of 96, indicating that the stock has often exceeded option traders' volatility expectations over the past year [5]