Coinbase Q2 outlook may weigh on shares, says Mizuho

Mizuho analyst Dan Dolev says that while Coinbase’s Q1 report was strong, this was widely expected given the rise of bitcoin and crypto volatility year-to-date. While take rates were resilient, the firm still expects the stock to trade down given that April’s $300less than transaction revenue implies a Q2 run-rate that is 16% below Q1 levels. In addition, alt-coins plus staking, which are subject to potential regulatory scrutiny, now combine to account for 45% of Coinbase’s total revenue, up from 42% in Q4 and 32% a year ago, the analyst tells investors in a research note. Mizuho keeps an Underweight rating on the stock with a $145 price target.