Coinbase Investors Applaud Layoffs: Is the Stock Turning, or Does Bitcoin Have a Date with $10,000? – Coinbase Global (NASDAQ:COIN)

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As more tech companies announce layoffs, investor reaction to the job cuts has been mixed.

Coinbase sells out on day one: On its first day of trading on April 14, 2021, Coinbase opened at $381, hit its all-time high ($429.54), and crashed to end the session at $328.28. Unfortunately for shareholders, it only exceeded that closing price twice in the next three sessions and then embarked on a historic decline.

The Coinbase Double Bottom: As investors pulled out of the problem in late December 2022, to at least take advantage of the tax advantages of their losses, they pushed the problem to an all-time low of $31.83.

The show bounced as high as $38.50 before reversing that low on Friday, when it hit a low of $31.55 and rebounded to close at $33.26.

As investor appetite for battered growth stocks improved on Monday, the show had one of its best sessions in quite some time, rallying $5.01, or 15%, to close at 38, $27,

More layoffs at Coinbase: Last June, Coinbase announced the cut of 1,110 jobs, or about 18% of its global workforce.

On Tuesday, the company announced the dismissal of another 950 workers, or 20% of its workforce. As a result, the company will have to incur total restructuring expenses of $149 million to $163 million.

CEO Brian Armstrong blamed the economic climate and the crypto market.

PreMarket Prep’s Take On Coinbase: When the issue was covered on the show on Tuesday, it was trading slightly in the red at $38.18.

Co-host Dennis Dick had a bad taste in his mouth for having already invested in the issue.

I took a huge loss on the show, buying it for $200 and dumping it for $80, he said.

I think Bitcoin finally has a date with $10,000, and for that reason I’m avoiding the issue.

The author of this article alerted investors that the market was taking the layoffs in stride and the issue was not deep in the red.

For investors looking to take a long position on the issue, offsetting the closing price ($38.27) can lead to sustained upside.

COIN Price Action: After opening lower on Tuesday, Coinbase immediately bottomed out at $37.74 and started rising.

In the first crazy 10 minutes of the session, the show broke above its close, broke above Monday’s high ($39.38), rallied to $42.40 and reversed course.

This narrowly exceeds its December 14 high ($41.90) and is well below its December 13 high ($46.33). As of 1:45 PM EST, Coinbase is trying to stay in the $41 handle.

The Coinbase discussion of PreMarket Prep can be found here:

Photo via Shutterstock.

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