Needham cuts Coinbase target on 'Alt-Coin Exhaustion'

Investing.com -- Needham lowered its target on Coinbase (NASDAQ: COIN) to $330 from previous target of $420. It also reduced Q1 and Q2 2025 revenue and earnings estimates for the stock on declining retail trading volumes amid what it calls "alt-coin exhaustion."

Alt-coins recently saw their worst weekly performance since the FTX collapse in 2022, nearly erasing gains made since the Trump election. Needham believes most retail investors have lost money this cycle, typically leading to lower trading activity in the coming months. Increased token unlocks and new launches have also added dilution pressure.

While stablecoin revenue remains a bright spot—USDC has grown ~50% over the past three months—Needham does not expect major regulatory catalysts for crypto until late 2025 or beyond.

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