Coinbase Stock: Cramer Warns Don’t Touch This Thing At All

Jim Cramer on Coinbase Stock

• Famed investor Jim Cramer is not optimistic about Coinbase’s stock performance, saying he wouldn’t touch it.
• Bank of America analyst Jason Kupferberg reiterated his „underperform“ rating on the stock and noted transaction volumes remain flat in the first quarter.
• App downloads have also dropped 24% since the start of the bank crisis, adding risk to interest income estimates.

Jim Cramer’s View

Famed investor Jim Cramer shared his view on Coinbase stock (NASDAQ: COIN) during an episode of CNBC’s “Squawk Box”. He expressed disappointment that the crypto exchange did not benefit in terms of inflows amidst recent bank failures and said he would not invest in it himself.

Bank of America’s Take

On Thursday, a Bank of America analyst reiterated his „underperform“ rating on Coinbase stock and cited data from CoinGecko which showed transaction volumes remained roughly flat for Coinbase in the first quarter (sequentially), missing consensus by $24 billion. The analyst also noted a 6.0% decline in app downloads (data from Sensor Tower) as well as a 24% drop in USD Coin market cap since the start of the bank crisis, which could pose risk to interest income estimates over time.

Year-to-Date Performance

Coinbase Global Inc has lost nearly 30% versus its year-to-date high but is still up 90%, at writing. Last month, the company received a Wells notice from the Securities and Exchange Commission for violating U.S securities laws but this does not appear to have deterred investors from buying into its volatility so far this year.

Conclusion

Coinbase has been one of 2021’s most volatile stocks but Jim Cramer remains unconvinced by its performance thus far, advising investors against investing in it while Bank of America analysts keep their „underperform“ rating intact with concerns over declining app downloads and USD Coin market cap adding risk to interest income estimates over time.