Mizuho analyst Dan Dolev reiterated a Sell rating on Coinbase Global, Inc (NASDAQ:COIN) with a price target of $27.00.
The analyst believes COIN is losing its share in retail crypto trading to Robinhood Markets, Inc (NASDAQ:HOOD).
In his view, a potential culprit is that customers are starting to push back on COIN's higher fees on small-ticket crypto trades, a practice in which HOOD has not participated.
Dolev's analysis suggests that COIN's share of combined COIN retail + HOOD crypto volumes trended lower in April vs. the approximate 65% ratio in the prior three quarters.
Also Read: What's Going On With Coinbase Shares Today
There is no perfect explanation for potential share losses besides worries about regulatory pressures, given SEC actions against crypto or the increase in small-ticket retail trading fees at COIN.
For perspective, COIN has been raising fees for small-ticket retail traders to offset volume declines.
On the other hand, retail trading peer HOOD did not increase spreads, which likely attracted some customers to its platform.
Price Action: COIN shares traded lower by 0.78% at $53.49 on the last check Thursday.
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