As more and more technology companies announce layoffs, investor reaction to the job cuts has been mixed. The latest company to announce layoffs is Coinbase Global Inc (NASDAQ: COIN), which is Tuesday’s Premarket Prep Stock of the Day,
Coinbase sell off day 1: In its first day of trading on April 14, 2021, Coinbase opened at $381, rose to its all-time high ($429.54) and fell to end the session at $328.28. Unfortunately for shareholders, it only exceeded that closing price twice in the next three sessions and then began a historic decline.
Coinbase’s Double Bottom: As investors exited the issue at the end of December 2022, to at least get some tax benefits from their losses, they drove the issue to an all-time low of $31.83.
The issue rebounded to a high of $38.50 before revisiting that low on Friday, when it fell to a low of $31.55 and closed at $33.26.
As investor appetite for beaten down growth stocks improved on Monday, the issue had its best session in some time, up $5.01, or 15%, to close at $38.27.
More Coinbase layoffs: Last June, Coinbase announced the elimination of 1,110 jobs, or about 18% of its global workforce.
On Tuesday, the company announced layoffs of 950 more employees. or 20% of its employees, As a result, the company will incur $149-$163 million in total restructuring expenses.
CEO Brian Armstrong Blamed the economic climate and the crypto market.
Premarket Prep’s Take on Coinbase: It was trading slightly in the red at $38.18 when the issue was being covered on the show on Tuesday.
co host dennis dick Already investing in the issue left him with a bad taste in his mouth.
“I took a huge loss in this issue, bought it at $200 and dumped it at $80,” he said.
“I think bitcoin eventually has a $10,000 date, and for that reason, I am avoiding the issue.”
The author of this article warned investors that the market is moving towards layoffs and the issue is not in danger.
For investors looking to long the issue, clearing the closing price ($38.27) could result in a sustained higher move.
Coin Price Action: After a lower opening on Tuesday, Coinbase immediately fell to a low of $37.74 and started an uptrend.
In the first 10 minutes of the session, the issue moved beyond its closing price, surpassed Monday’s high ($39.38), jumped to $42.40 and reversed course.
That’s just above its December 14 high ($41.90) and just shy of its December 13 high ($46.33). As of 1:45 PM EST, Coinbase is attempting to hold onto the $41 handle.
Coinbase discussion of PreMarket Prep can be found here:
Photo via Shutterstock.