Leading crypto exchange operator Coinbase (COIN) has decided to pause hiring for the foreseeable future. In addition to its crypto trading platform, Coinbase also operates an NFT marketplace. COIN stock went public through a direct listing a little over a year ago at a reference price of $250. The stock has pulled back more than 70% from that level.
Coinbase’s move to halt hiring is in response to current market conditions and business prioritization efforts. Businesses across the board are grappling with various macroeconomic headwinds, forcing many to try to adapt to cope with the challenges. Coinbase hopes that actions like slowing headcount growth will enable it to successfully navigate the macro headwinds.
Chief People Officer of Coinbase, L.J Brock, said, “If we’re flexible and resilient, and remain focused on the long term, Coinbase will come out stronger on the other side.”
Wall Street’s Take
On June 3, Bank of America Securities analyst Jason Kupferberg reiterated a Buy rating on Coinbase stock with a price target of $80, which indicates 20% upside potential.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating, based on 15 Buys, three Holds, and two Sells. The average Coinbase price target of $152.16 implies 107.5% upside potential to current levels.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 76% Bullish on COIN, compared to a sector average of 65%.
Key Takeaway for Investors
The labor market is tight and many companies are staring at sharp spikes in payroll expenses amid rising wages. Taking a break from the hot labor market may allow Coinbase more flexibility in controlling its costs. Moreover, the hiring pause suggests the company feels it has enough people to run its operations for now.
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