Coinbase Global Inc (NASDAQ: COIN) stock is down 25% for the year and unfortunately, legendary short seller Jim Chanos says things are unlikely to get any better in the near-term either.
Jim Chanos shorted Coinbase stock
On Friday, Chanos said the cryptocurrency company was unlikely to get profitable this year as he revealed having shorted Coinbase. Speaking with CNBC, he noted:
Coinbase is a bubble stock. It’s got a unique market niche; it’s the only public crypto exchange and consequently, has the valuation to go with it. But as competition increases, you’ll see fee compressions and so, Coinbase will probably not be profitable this year.
Also on Friday, Jim Cramer implored that investors get rid of unprofitable companies as well.
Tim Seymour agrees with the ‘sell’ call
Others that share the same outlook on Coinbase include the Fast Money trader, Timothy Seymour. The founder of Seymour Asset Management isn’t convinced that Coinbase is a suitable pick for the current environment.
Coinbase has a legitimate business, they’re taking a major demographic, have an enormously sticky market. But I agree that it’s a company that’s not going to make money and I don’t want to own such stocks in this environment.
Last month, Coinbase reported market-beating results for Q4 but gave dovish guidance for the future.
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