“We believe that further reductions are needed because the announced cost-cutting efforts simply bring personnel back to levels at the end of the first quarter,” Nance wrote. As retail trading activity runs out. ”
Nance predicts that Coinbase’s revenue will plummet by more than 60% this year compared to 2021.
Robin Hood gathers based on M & A wishes
Robin Hood did not comment on Monday’s Bloomberg report. Bankman-Fried said in a statement to CNN Business that FTX was “excited about Robin Hood’s business outlook and the potential ways to partner with them,” but “active M & A with Robin Hood.” There is no conversation. ” Robin Hood’s stock was pulled back on Tuesday.
Still, parts of Wall Street continue to be optimistic about Robin Hood’s future.
An analyst at Mizuho Americas wrote in a report on Tuesday that a deal with FTX would help Robin Hood “expand its reach and breadth.” Mizuho analysts added that Robin Hood also believes that “it can survive and prosper.”
And Goldman Sachs’ Nance said in a Coinbase report on Monday that he was upgrading Robin Hood from “sell” to “neutral.”
Why does Nance nudge upwards? Robin Hood’s market capitalization was around $ 6.5 billion before the FTX rumored rise on Monday, just above the balance sheet cash of $ 6.2 billion, suggesting a limited downside.
But Robin Hood’s “fundamentals are still very weak … because the continued loss of appetite for retail trading risks is putting pressure on active users,” he added.