Coinbase stock slides amid crypto plunge, downgrade to Neutral at J.P. Morgan

Coinbase Global (NASDAQ:COIN) stock is slumping 5.7% in Tuesday premarket trading as bitcoin (BTC-USD) and ethereum (ETH-USD) continue to drop and after J.P. Morgan analyst Kenneth Worthington downgraded the stock to Neutral from Overweight. "While we continue to be believers in the cryptocurrency markets and blockchain technology, the extreme decline in the price of cryptocurrency markets in 2Q22 combined with Coinbase's (COIN) ramp in investment would appear to not only make it challenging for it to generate a profit in the near future, but also to meet its annual loss cap cap of $500M of annual EBITDA," he wrote in a note to clients. The company hired more than 3,200 employees over the last year with 1,200 hired in Q1 2022, Worthington pointed out. While the company has implemented a hiring freeze, it may need to start reducing expense levels, he added. "It is easier to grow than shrink and management/Coinbase