- Coinbase (NASDAQ:PIECE OF MONEY) is up more than 13% after a memo was sent to employees yesterday
- Company slows hiring this year as crypto sees broad downturn
- Coinbase saw its share price plunge last week after a disappointing first-quarter earnings call
Coinbase is up today after the company’s management announced that it would slow down the hiring of new employees. COIN stock closed over 13% higher on a strong day for financial markets.
On Monday evening, Coinbase President and COO Emilie Choi sent a public note to employees informing them of the company’s new hiring plans. According to the note, current market conditions are forcing the company to reverse its initially aggressive plans for the year. Coinbase had apparently hoped to triple the size of the company this year. The recent market downturn has clearly put an end to these expansion plans.
“Headcount growth is a key element of our financial model, and it is an important action to ensure that we manage our business according to the scenarios that we have planned, in particular the potential adjusted EBITDA that we are targeting. to reach.”
Coinbase is not alone in this judgment. Industry giants love Amazon (NASDAQ:AMZN) and Metaplatforms (NASDAQ:Facebook) have each already announced plans to limit hiring in the future. Meanwhile, carvana (NYSE:CVNA) has announced plans to lay off around 12% of its workforce.
The second-largest crypto exchange by market capitalization, Coinbase has been on a downward spiral recently alongside the biggest crypto market. Its earnings call last week also failed to assuage investor concerns.
COIN Stock jumps after hiring slowdown, revenue misses
Coinbase has felt the blows of a nasty market recently. Last week, the company released its earnings report for its first fiscal quarter ended March 31. The crypto exchange fell short of analyst projections, reporting $1.17 billion in revenue versus $1.48 billion expected. The company also announced a loss per share of $1.98 and a substantial drop in the number of monthly trading users.
Investors immediately dumped Coinbase, leaving COIN stock to fall more than 20% in just one day after its earnings call. In fact, the stock has lost around 70% of its value since March, alongside broader declines in the tech and crypto space. Bitcoin (BTC-USD) has also seen dips below $30,000 per coin over the past few weeks, down over 35% year-to-date (YTD).
That said, Choi reiterated the company’s strong position in the market – and the bright horizons that await the platform.
Overview: We know these are confusing times and market downturns can seem scary […] We are in a position of strength – we have a strong balance sheet and have weathered several market downturns before, and emerged stronger each time […] [T]the best is absolutely yet to come for us.
All told, today’s jump might reassure COIN stock investors. The company seems well prepared to take the necessary measures to endure this cold period.
As of the date of publication, Shrey Dua does not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.