Coinbase shares slump as analysts weigh impact of Ripple court ruling

Exchanges • July 14, 2023, 3:38PM EDT

Published 1 minute earlier on

Quick Take

COIN traded down by more than 3% after a gangbuster Thursday.
However, financial firms have raised the stock’s price target to over $100 following the Ripple Labs lawsuit decision.

Coinbase shares declined on Friday after a gangbuster session for the stock the day prior, though financial institutions have increased the stock's overall price target.

COIN was trading down 3.3% to $103.50 at 3:31 p.m. in New York, according to TradingView.

The firm, which has seen its stock price surge since the beginning of the year, rallied more than 20% on Thursday alongside the broader crypto market after a judge ruled that Ripple Lab's sales of XRP on exchanges did not violate securities laws.

Relative to bitcoin, the firm's stock has taken off since mid-June. That's been underpinned by headlines of its involvement in the launch of a number of proposed spot bitcoin exchange-traded funds.

Earlier Friday, shares in the exchange surged above $110.

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Increased price targets

Private investment firm WedBush said in a Thursday report that it increased its price target on the company to $110.

"We are specifically encouraged by the suggestion that XRP sale on the public exchanges did not involve securities," the firm wrote.

The bank Needbush also increased its price target to $120 from $70 following the decision, Coinbase reported.

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Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].

MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.