, i am not sure what coinbase does. [laughter] lisa: it is a crypto exchange. tom: they are going to cut the team by x percent. i think we have to go to kailey on this. we are going to see a lot of this right? kailey: in the crypto space you likely will. we have already seen it from a number of companies in the ceo of coinbase saying there is a number of things that have changed the last month that led to this decision to cut 18% of jobs. economic conditions are changing rapidly. they say managing cost is critical in down markets. that is not exclusive to crypto companies, everybody is having to do that in a market in which it has been brutal. finally, we grew too quickly. tom: i am going to punch somebody. [laughter] lisa: i remember when we were talking to scott minerd and he talked about how he had been able on crypto assets and then there was no reason to buy. that is looking somewhat pressing today and we have the fed special tomorrow. maybe we can ask him about it. tom: say something, kailey. kailey: we are doing

again, they just overhired >> is coinbase, like it's a great one.ave good companies that don't topoperate well >> take an onramp to crypto like coinbase they're going to do crypto wallet they're going to do stuff. some of these brands will survive. i just think that again -- >> when you talk about winter, you're talking about time. really and when we think about the stock market, the nasdaq topped out in march of 2000 and it bottomed out in october of 2002. doesn't feel bad enough yet. >> pete, jump in here. when i see a stock we talked about yesterday, coinbase, 382 to $50 today in a couple of weeks, months, max time. a lot of pain. people losing money. not making light of it, but at some point, it either stops going down or it goes to zero. that's it. >> right and i think this is a quality company, however, but they had that burn rate they had too much going on probably had too in employees. too much of a lot of things including the fact that the stock went straight up as you just mentioned 382 bucks a share or wherever it got up to. unbelievable

. >>> still ahead, coinbase laying off almost a fifth of its work force amid a collapse in its stock've got the details and what that's telling us about the froth coming out of the market "the exchange" is back in two. don't go anywhere. with the help of magical technology. but what about today? ♪♪ i can't wait for what tomorrow will bring, but in the meantime, let's enjoy the ride... ♪♪ hello. let's enjoy the ride... everybody here for the interview? okay. what do you drive? i ride a jet bike. >>> welcome back to "the exchange." before we go, let's look at coinbase, the company which has traded nearly in tandem with bitcoin having a wild session after announcing layoffs the shares are just fractionally lower around 52 right now as more signs of stress in this crypto market play out the shares down 80% year-to-date let's get to kate rooney with the latest. >> coinbase plans to lay off 18% of its work force. that nets out to about 1,100 people, ceo brian armstrong telling employees in an email, quote, we appear to be entering a recession after a ten-plus year economic boom the company

coinbase was actually fluctuating. that means you don't know how investors feel about something like this. they worry about hiring plans when hiring plans were so ambitious. crypto.com, another 5%. you are seeing a lot of pressure in the hiring market. are we going to see some of this carnage float into other areas and will put more pressure on the company then? emily: big questions to consider. we will get to you later with our crypto report. i went to dive into the market as we wait for the fed's decision. what are you expecting from the fed tomorrow and how is it impacting your strategy? >> the fed has to be aggressive, no question about it. they are well behind the curve and have been for some time. we never really bought into the transitory inflation nonsense and this has gotten far beyond anyone's expectations. our expectation is they act aggressively for the first time. i think we all want them to take it carefully and slowly, but the reality is they do more damage if they are more aggressive than if they don't.

as you know investors eyeing a rate hike tomorrow that could be the fed's biggest in decades if coinbase is anything to go off of, there's more pain to come, at least for crypto. announcing some layoffs. we'll get more on that, that said, not all tech is created equal. we have the street's top tech picks this hour. >> let's start with a big winner this morning, oracle that stock surging, up about 9% after locking in a beat on the top and bottom lines license revenue a big driver for the quarter, two nine-figure deals oracle mentioned evidence that the company's push to move customers to the cloud gaining some traction. ceo catz says she sees the cloud building more than 30% in con constant constant currency in 2023. i was wondering how oracle was going to fare given the strength we saw in mongodb, this cloud database upstart the upside surprise in oracle revenue, $240 million above the constant currency guide. that's almost as big as all of mongodb's revenue for the quarter that they just reported, $285 million so i guess a couple ways to look at that. it shows the overall size of oracle

is it as bad as coinbase >> coinbase is not alone here.ut 5% of its staff and rob enhood a month ago had 10% layoffs. the surprise for wall street was why didn'tcoinbase do this sooner cash burn has been a focus for analysts an it was a pretty drawn-out process. they started with a hiring pause and then a hiring freeze and extended that and then rescicind some job offers. i spoke to emily choi, the coo, and she told me they wish they could have done this sooner but the intention is this is a big enough reduction it's a one-time thing. she called it painful but necessary and also pointed to some of the macro backdrop here and what's happened in the past month or so, jamie dimon's warning, inflation numbers and called this the prudent thing to do interesting that crypto is so closely tied to what's going on in the broader economy, not decoupling or trading at sort of a safe haven in times like this. there are others, though, who are keeping their foot on the gas. if you look at ftx, that company says it's going to keep hiring and fidelity ha

i was laid off by coinbase it was shocking to say the least. i got the unfortunate news of being one of the 18% of coinbase employees that were laid off. i was part of an 18% layoff along with 1100 other talented folks at coinbase. in a conversation with cnbc, the company chief operating officer said coinbase is reacting to uncertainty in the cryptocurrency world and the overall economy. recent hiring freezes and a wave of layoffs is an effort to survive through the long haul. >> the best thing we can do given the recent made this decision is to make sure we treat those outgoing employees with as much respect, dignity and generosity as possible. and to that end we have offered them generous severance packages. >> reporter: jeff bellisario at the bay area council said after two years of serious growth, some tech firms could begin cutting back as consumers who shifted their spending online during the pandemic are now facing new challenges. >> whether it's around inflation or interest rates or consumer sentiment, many of the metrics are heading in

we're looking at the 18% layoffs at coinbase. of by net had a tweet saying it was not easy saying no to the super bowl and large sponsor deals, but we did, and today we are hiring for 2000 open positions. meltem: at coinshares, we are not far -- not firing. we have slowed down our pace of hiring. from a risk management perspective and balance sheet perspective, coinbase is being very prudent. on average, coinbase is generating about $1.6 million of revenue per employee prior to the cuts. with revenue going down, we look to profitability. i don't think we have seen anywhere close to the bottom of cuts. we are going to continue to see more cuts in the publicly listed companies, as well as the privately listed companies. the other thing we will see is a lot of companies are relying on all these deals to try to go public and get liquidity. i think we are going to see a lot of pressure on that going into q3 and q4, which is going to change the hiring environment. emily: appreciate you taking the time to join us. sonali, as always, tha

i think coinbase looks really good.t, we're not looking at fundamentals here. hey, let's bottom fish. i think square fits that same model. square is partially a payment system. which is heavily involved in the crypto world which i'm a believer in. that is food way to play those. stocks have been beaten down to zero, really hurt badly six months to a year. amazon, look it fuel prices continuing to go higher, amazon will have more business than they have been, split at recent price at 114 i think amazon is a great play. liz: i find it interesting square is down 57%. i'm okay with that one. all the people are using it. it is not going away. it has been beaten down so much. we have about 15 seconds left. what do you think of the market today? it is very indecisive. the bear market rally is over. i think i look for the market substantially lower, i think the next 20% down after leg we finished. i think this is nothing more than a bear market rally. [closing bell rings] >> todd has been a trader for a long time. take that for

o wen lao has an operate on coinbase with a $90 price target how did we get there >> how did we getre? i understand in the near-term coinbase will be suffering because the fed keeps tightening policy that would keep pressure of the trading volume in the near-term, but longer term this is actually the environment that the stronger player when coinbase can slide and they have a very strong balance sheet and 6.1 balance in cash and they have a strong brand name and number three, they are expanding and diversifying their revenue stream so longer term, i think coinbase can be one of the survivors and become stronger in the longer term >> you have a $90 on coinbase and i'm looking at july of 2021, you had a $444 target on that and a buy rating on it you said people should buy it at 377 in february and a 314 in april and 197 in may and that was your price target and now you're down to 90. are you just telling people to buy this all of the way down >> i think that is a question, and we did not expect the severity of the fed tightening policy to underestimate the leveraging cycle and we woul

a high-yield product coinbase banned from doing it. absolutely killed. if this is a winter, some cryptocurrencies survive wouldn't that be bullish for a platform essentially already been regulated and will continue to be regulated? >> for sure. we agree with all of those points also say that the company's been clear they're going to cap their losses this year, and adjust ebitda no worse than negative 500 million. a lot of their slowdown in hiring and firing has been well publicized recently. we think they've got balance sheet and management team whose manage through a crypto winter, i harkin back to the point made earlier. consolidation in this space. and more stable well-established players operating in the less risky fashion, like coinbase, should prevail on the other side. >> not to mention pretty decently sized cash file jason, thanks. bank of america. >>> and i mention, swings going on in the dow in particular. up about 200 points from where it was a few minutes ago talk about an individual stock still falling. docusign wolf research downgrading it

coinbase is laying of 18% of its workforce.s is bloomberg. ♪ at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. alix: coinbase laid off 18% of its work force another sign of the downturn as they join other crypto bases. joining us now issanali basit. do you feel they are paying for this? sanali: coinbase is publicly traded so what is the expectation? it's about anyone who invested in crypto companies that are related to the crypto downturn more largely. remember how many people have left wall street to join these firms? it's pressured not just on the market but also on the job market after you've seen so much competitive pressure. guy: is this good or bad news for wall street. sanali: the ceo of nasdaq said we have the technology that exists. you have to wonder with what's going on encrypt joe that some of these projects don't exist. the protocol could come u

i think that coinbase is a -- you know, a real problem right now.inhood relies just on selling the order flow not that every broker out there doesn't, frank, but when you're a broker that is built solely on the idea that you do not provide anything beyond the bare necessities for trading and then as traders mature, and as they get a little more skill set that they'd like to use more spreads and things like that, then that's just not a viable platform anymore so robinhood, nope coinbase, if it got cheap enough, but it isn't there yet i know goldman's taking a look at celsius, but that's a whole different animal i think most of these are pretty much stay away right now, frank. >> next up old dominion upgraded to overweight at wells fargo this kind of in my wheel house this is a less than truckload. that means a couple of companies put some different loads onto a truck to go to the same place as opposed to getting one truck by themselves are you seeing opportunities in the ltl space? >> well, i've owned this name for previously in the past, sold out of

coinbase with $173 with a buy.ll of the crypto stocks that i'm lacking at on your list right now. wondering what happened there? did you underestimate what would happen to bitcoin with rising interest rates? >> i think over 12 months, longer term. coinbase is still one of the leaders in the crypto space. and some of the private companies and the states, still decent valuation you look at primary competitive coinbase, that model is still solid. if you look at coinbase relative to some of those, if you think the space is going to grow over 12 months or so then it's still an attractive stock. we've seen now, crypto goes through cycles there's been three-plus cycles if you're building in a bear market we think that can be the case. certainly in near-term risk, we've seen interest rates with a lot of tech stocks declining on the back of that for the longer term we can state that. >> but you need bitcoin prices to stabilize, right, john? from $50,000 to 25,000 this last november >> some of them do -- if you're looking at

emily: would you say in the case of coinbase it was a mistake in execution?e a public company now. michelle: yes, many public company ceos have had to deal with their stock price changing and a market pivoting to one that values profitability. i think the important thing is that crypto is very diverse and there are companies well-positioned that are not struggling to make an impact on the future. emily: sequoia has a huge portfolio and you've got workers moving between companies all the time. do you see employees rethinking, oh, maybe i should stay at apple or google for a while longer? michelle: we have seen quite a valuable market in the market for startups. one positive of this period for the startups that play their cards right, they will be able to hire talent that they would not have been able to before. this loosening of the talent market could be beneficial for those companies to stack their staff and teams with top talent from these companies. we are optimistic that those companies will be able to succeed, even if there are some near-term shifts. emi

>> the coinbase people >> brian armstrong >> okay. >> is this genius? is this genius you call it genius >> do i call what, a stock price down 80% genius or i'm sure he's a very capable, smart guy. i don't really know him well i think i met him once >> a bad inning? >> well, one bad inning can make you lose the game. >> not making the playoffs this year i'm saying we always -- like tom farley, i have great respect for this, great respect for that you know what they say when they're off tv man, he's choking. that's what we have to do. we have to tell the truth. we have to thell the truth. when you fire 18% of people, rescind your offer, david, that is suboptimal. and ill advised. >> okay. i mean, i'm trying to think through this he may be responding to current business conditions to try to actually make sure he still has a business by laying people off. it may not be ill-advised. >> i'm just saying there's a lot of people guided in these quarters like the dogecoin, since "saturday night live" and they thought they could trade them and make a lot of money

we are obviously looking at these 18% laughs with coinbase. of finance had a tongue-in-cheek tweet saying it was not easy to say no to large sponsor deals but today, we are hiring for 2000 open positions. >> at coin share, we are not firing. we have just slowed down over hiring. coinbase is generating about $1.6 million in revenue per employee with revenues going down. we look at it with clean shares as well and i don't that we have seen anywhere close to the bottom of cuts. we will continue to see more cuts and i think the other thing we will see is a lot of companies are line on all of these deals to try to go public and get more liquidity. i think we see a lot of pressure on that as well. >> we appreciate you taking the time to join us as always. thank you. coming up, will elon musk still keep his twitter if his deal with twitter come through. that is next, this is bloomberg. ♪ another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with f

and obviously with coinbase, you have seen the price of cryptocurrency go down you're seeing money coins and tokens move from exchanges into their individual own wallets that's an opportunity, not a good sign for coinbase on the robinhood side, you know, that company has also been in trouble and struggling less volatility in the market. i would like it long term for investors. i think there's some opportunities there just because of the way it downgraded robinhood down 53% year to date, but very volatile in the near term >> i'm thinking back to what john doerr said about too many unicorns in one sense, how could that be if you have all these companies that are really worth a billion dollars or more, that's great, but i think the implication is they're not really worth a billion dollars or more. that's why they're not going to get more cash, because their future is not as bright as the rosy valuations would have suggested. but surely, there must be a parallel in the public markets where there's some group of stocks that doesn't deserve the valuation that they're getting and all of that is

but will coinbase completely disappear? don't think so you have your stocks out there people ready to create and short of sell it that's the marmg tifrance is this time they can make decision of buying and providing liquidity and coinbase cannot even have a lending start up >> sort of the j.p. morgue thochb crypto cycle. the lender or buyer of last resort >> it's super fascinating. it's sbf is going to be the jesus of crypto? who knows. but for me, it goes back to the season of being a u.s. company and going ipo, verses not and expanding into teng other products >> it's too bad, in a way, because there are implications for the u.s.'s position lin of this good to see you again. still ahead, spirit airlines board still supports a merger with frontier. we'll hear from the ce, eo l and is it a bullish sign from home boirs >>> welgcome back to "the exchange." a quick check on markets shows we're fractionally down for a s&p. crude climbing back to $110 a a barrel 640 after falling earlier. and gas prices flirting with their worst

when you look at the tea leaves right now and i'm not saying at all that coinbase anddicative oy theyre not when you have the tech companies pausing or putting jobs or we have the most valuable bank in america had and ceo saying the economic hurricane is coming how long can workers count on the greener pasture >> something for us which is a clear indication that things are changing is layoffs. we have been hearing about how tech is having increased layoffs of t layoffs. it is true this data is from april. we are not seeing that in other industries tech had a slight increase in layoffs in our data. overall, layoffs are really at a 20-year low. 1.2 million. a lot of this places the great resignation and great reshuffle has been in some of the more traditionally lower paid industries we are still seeing the puts high there and places like manufacturing and openings are still really high. while it is true things might change slightly in the tech sector, we are not at a point to say the whole economy will follow. >> i'm not implying the economy will fall off a cliff here before we let you

so you'll notice that the september 65 puts in coinbase cost $16 that's well more than 20% of the strikeurse, that also applies to mirror dated options we're looking at selling the june 60s once again, the idea here is to try to collect the decay on an accelerating basis >> since then, coinbase is way down, but the trade is way up. looks like you collected the decay, mike. what are you doing now >> yeah, so we have a situation here because obviously you have expiration on those junes coming up next week so you want to keep an eye on that you want to close those before expiration if you can. my strikes were a little different because my timing was different but i rolled them down to the 55, the first out of the money strike in september today. that's what i would be doing with my septembers if you also hold those >> all right there we go. time to take some of your tweets our first fan is asking the xle, this is for tony near its 2014 highs. is it time to take bearish exposure in a pullback or is it too early? what's the best strategy tony, over to you. >> yeah, i'm not in the camp you're

itself people need to have confidence in where they're storing money they definitely have it at coinbase and need to keep it. and that's the note from brian armstrong this morning, they just spent all this money hiring these people so a huge amount of the 5,000 joshua citing were just hired. that's never great for a company to spend all of this money hiring and now you're going to let them all go, but it is a necessity because they cannot be spending the 6 billion in cash on employees, to josh's point, that aren't doing anything i think it is a bear market. the crypto market does not have the federal reserve to save them so the crypto market will have to save itself as a position that's sized right, you want to own this long term, which i do, but i do not want to adhered when i have questions about the plumbing >> i agree >> still saying wait and see. >> i agree if you hold crypto, coinbase is among the safer, my guess, who knows what happens tomorrow, i agree there's a lot of confidence in the crypto market in coinbase that's not the issue they don't really get paid for people holding c

you do not need companies that are thousands of people wide like coinbase, you have companies that arealler. if you hundred -- if you dozen, if you hundred, it is less impactful in a time like this. i would still be quite optimistic within the space with the potential that crypto and web three has. >> what company's can hire the most in? once you have a lot of crypto skill come again the crypto extra fees -- expertise in a crypto winter? >> as you know we work on the protocol, many of the developers within the ecosystem are hiring. there are many protocols, we still need talent. in a market like this, it is easier to get talent. the price tag for talent were rising during the bull market, it is a good opportunity for projects and companies to be very decisive about who they want to hire and the role they need to hire for in the broader macroenvironment. >> how do you think about the inherent conflict, decentralization on companies that are getting bigger and bigger, might need authority and centralization of a product? >> is a great question, in web3 do i give the power away and back t

liz: shares of coinbase are dropping dramatically.r rival crypto exchange finance announced its dropping some of the trading fees. finances would allow users to make bitcoin trades with 0 trading fee. coinbase generated 1.17 billion encrypted trading revenue for the first quarter of this year end the stock right now is at $52. please keep in mind that when it went public in april 2021 coinbase one as high as $350. not pretty the move comes near a bearish time with crypto following below $18000 over the weekend for the first time since december of 2020. right now 19957. let's take a look at shares of amc a quarter of 8% at this hour, the movie theater chain will make its debut on the russell 1000 this friday. that represents the top 1000 companies by market cap. let's turn to charlie gasparino and usually when they join the index, anybody has to bring on the russell 1000. >> i just want to back up a little bit on coinbase. on the layoffs and how dramatic and imploded they were to go to 10000 people now there shrinking back to 1000. it'

coinbase joins crypto as blockfi chopping 20%, wing fell foss's twins company, gemini cutting 10% ofresting when i spoke to ftx, one of the largest crypto exchanges own the planet, bret harrison told me they are not freezing or cutting jobs there. listen. >> storm of crypto prices going down. general private and public market valuations going down. you're continuing to expand. continuing to hire. looking to potential sources of either acquisitions or other kinds of invests across the state. even in times like this. reporter: broadly the crypto world confidence has been shaken in the industry, especially recent celsius blow up, one of the largest crypto, looking bank run in crypto. there is concerns about who is next with the steep price drop in bitcoin and ethereum. microstrategy gone all in bitcoin. 129,000 by bitcoins. the problem with him and his company they bought at price of $45,000. they're a billion dollars underwater. there are concerns how they pay for the margin loan of $2 billion. charles: i heap to get michael on the show soon. susan, thank you very much. joining me euro

the coinbase layoffs were just wacky, dramatic, and weird.g because brian armstrong, the ceo just a couple months ago was saying we're going to grow to 10,000 not too long ago. they grew over a course of like four months from 2,500 to 5,000. liz: okay. that's just crazy. charlie: that's crazy, okay? then they had plans to go to 10,000 and you know what happened next. so and the way they did it was, that's a whole other story i wrote about that in my column and post. people knew they were getting laid off by the first sign was they got a text message. liz: and they were locked out of their laptops. charlie: then you knew once you were locked out. but a phone call sometimes or call people in the room. everybody gets laid off. liz: everybody. don't trust anybody who hasn't been laid off. charlie: there's no perfect way of doing it but there are better ways than what brian armstrong and coinbase did so what they did there spooked the market and now you got this thing with celsius, this lending outfit, that's frozen everybody's accounts and if thi

we also had coinbase saying they will cut 18% of their workforce.e are watching this crypto winter, it could be in the cards. annabelle: volatility is the name of the game here in asia as well. we are setting up for a week of starts. new zealand coming online, a bit on the downside. a bear market for new zealand stocks, closing 20% lower from january 2021 peak. australian futures are also looking lower, the asx yesterday tumbled the most in more than two years. one analyst weighing in and saying that we can expect more market shocks set to continue. the yen, very much in focus as well because we are past the 135.1 nine mark, the first time in 24 years -- 135.19 mark, the first time in 24 years. that is the level that could force the boj to intervene and change the course of their policy direction. haidi: you can see the complete disintegration in sentiment and confidence. you talk about what we are seeing across equity markets or across-the-board markets, it is the fear of stagflation. take a look at this new survey from bfa, showing us that stagfla

coinbase in particular down another 2% ahead of the open. it was down much more than that.lked yesterday about how coinbase came out of said they were going to cut keeping percent of their staff because the adoption just was not there from the institutions. i'm struck by the people who left big wall street firms to work for a place like coinbase and were told they don't have a job anymore because this market is changing that quickly. the other bitcoin proxies also down across the board, although they are coming back a little bit. how much are people trying to bottom feed or figure out what the losses are done? tom: i urge everybody to go to all these names we don't know anything about and read their websites. riot chain -- riot blockchain is endeavoring to be the driver of the future of american mining in bitcoin. lisa: i know you're skeptical. people were thinking this could potentially be a market. i'm excited to speak with peter tchir later in the show because he has said there is systemic risk to this given all of the energy that goes into producing crypto assets, to cr

what do you mean there and how is that translating into stock prices for companies like coinbase anders. >> so i made a sharp u-turn from my bullish on affirm i could not be more bearish. for months since we initiated coverage that crypto transaction fees are going to zero, right? we didn't know the news was going to hit today, but this is actually materializing and you are seeing crypto fees eventually going down and this is 90% of coinbase and the note we wrote today shows you that down days have much more volumes compared to the up days on bit coin, they're more dramatic than up days which means that people are not buying the dip and that's very important. that's the crypto fatigue that we're talking about. something has happened with the consumer. >> yeah. the fed. >> dan, there you so much. >> the crash very insightful and very enlightening and we'll have you back soon. dan dolan, thank you. >> speaking of which, as an economic recession coming with fears over a slowdown, could ad and subscriber-driven businesses also be at risk? plus pulling e-cigarettes off shelves. altria we

coinbase is doing interesting things. all of this great activity is going on. macro markets to normalize and you will see the impact. i suspect we have a few months ago before the macro markets normalize, and once they do, you will see crypto rebounding. that continues to be true in this market. emily: it can be hard for investors to believe in the future whether it's crypto in -- the queen jubilee was this way, we saw a hologram of the queen. how do you see this as an indication of where the metaverse and some of these future technologies are headed? matthew: the most important thing is the advent of graphics based computing, 3d simulations to solve problems that previously were outside of our reach, while also recognizing younger generations, i grew up using text, my identity was reflected by an email address, growing into more multimedia and now we see through minecraft and others that is reflecting through 3d objects, avatars, 3d spaces. the confluence of graphics based computing on the industrial side mixed with societal and behavioral changes, posted by n

robinhood, coinbase as well.ars to be catching up not a first mover by any means, but getting further into cryptocurrency as bitcoin is below 30 k. >> you answered my question. i asked if robinhood and coinbase had those capabilities. thank you. followand subscribe to our podcast, listen anytime, he, erer you download podcasts tech check is back in just a tech check is back in just a moment but unfortunately, many older americans just don't have the money to do all that. - [narrator] are you living on a fixed income? worried inflation may affect your savings? call aag to discover how home equity could be a financial safety net in uncertain times. - most people thought the three legs of retirement, pension, social security and savings would be enough to get by, but it's kind of like this three-legged stool, little wobbly... but i think i might have a solution. - [narrator] call for your free info kit. the kit will show you how you could cover retirement expenses, pay for healthcare, preserve savings and so much mo

leaving coinbase shares almost 80% off the 52-week high contessa is watching that. >> hi, there coinbaseman sachs downgraded the crypto stock to sell it slashed its price target to $45 from $70 the reasons here tumbling crypto prices and trading volumes. bu bitcoin prices have plunged nearly 33% this month. also after the crypto exchange operator announced job cuts earlier this month goldman warns coinbase likely will have to make more cost cuts in this environment. shares have lost 23% of their value this month then the shares of robinhood rising slightly. goldman upgrading the stock to neutral from sell, saying the stock has underperformed significantly since the previous downgrade, with shares plunging nearly 20% this month. all right, the analyst also says robinhood's net interest income could benefit from faster than expected interest rate hikes it warns fundamentals are still very weak and cuts robinhood's price target here by $2 to $9.50, carl. >> contessa, thanks. we'll keep an eye on the goldman piece today. >> meanwhile, snowflake shares on pace to end the month up more than 18

haidi: at the same time you have a big crypto firms like coinbase laying off workers.least one bitcoin bull is saying that he can handle the volatility. su: yes, that would be microstrategy's ceo, who says that is stocks lost some 25%, but he can handle the volatility going forward. to look at the companies that are cutting, coinbase is cutting 18%, joining companies that are adjusting to this bitcoin winter. back to you. haidi: su keenan with the latest on crypto. lots more to come on "daybreak: asia." this is bloomberg. ♪ >> you're watching daybreak asia. we are half an hour away from the open in japan, south korea and australia. we are looking at how the yen is trading at the 24 year low against the greenback this morning. we are seeing signs of risk aversion that's creeping into yen crossing this morning. the aussie yen, a typical barometer of wrist sentiment. we are seeing it down for percent off this year's peak. the euro-yen just claiming that 140 level as the session in new york winds down. changing to the terminal, let's have a look at how the weakness in the

another thing of ftx, the client base is very different from say a coinbase they started out as an exchangetto was built by traders for traders. the users of ftx are different they tend to be professional traders that use the platform 24/7 you tend to have larger accounts the type of demographics they going after with the potential robinhood partnership is very different. >> we'll see if something happens. 7.5% stake is nothing to sneeze at tr tracy, thank you take care. >>> on deck, speaking of crypto. the doctor is in jon najarian is here and he will talk about crypto and the bump of china stocks. if you don't realize this, the rbi is next and you will realize there is a bull market somewhere. just not here. we're back rightft ts. aerhi >>> welcome back a lot in store for investors today. first on the menu, you hear from tom barkin that will be followed by two pieces of data the april s&p and case-shiller home index then the consumer confidence at 10:00. and then fed speech from mary daly and then the last-minute hearing for newly obtained evidence from the january 6th committee. >>> and

it's a largest exchange if you buy and sell bitcoin you do it on coinbase but coinbase is the biggest're calling for a 45-dollar price target they had a price target of 3 - 5 late last year. that's why you could never trust recommendations up from brokerage firms that bring the ipo. >> that being said the shorts are out these are the professional traders looking to short the stock they are talking to a lot of reporters. here's what i am hearing from them they think some vibes even in the current form does it have to reorganize in bankruptcy, it does have a lot of cash i think 4 billion it is blowing about 1.5 beginning cash year, do the odds, has some debt, about 6 billion is a 14 billion market cap. you put it all together they announced massive layoffs if bitcoin in diphtheria and some of these big players that they can't hold their current levels. if they go down with a content out, what happens to them the short-sellers are saying this is a place, a company that's really going to struggle to stay out of bankruptcy, one of the things that they mention this is a customer service thi

coinbase co-founder director frederick ersom bought $77 million of coinbase stock and that's up 7% fromught $50 million of his own stock and shopify getting a vote of confidence from its own ceo who bought $10 million worth of that stock. best buy chairman amer ity us richard schulze buying bbb stock up 20% from its may lows on the buying basis, it is half the loss of 2020, but insiders tend to be a good signal of where the market is near the top and near the bottom and they called it back in march 2020, and we'll see here >> everyone who was upset they missed the sales last year, here's your chance to buy if you want to follow them now. thanks, robert frank. >>> with the firm sinking thoday that's ahead on "power lunch" which begins right now ♪ ♪ >>> and kelly, we'll see you in just a moment. meanwhile, welcome, everybody, to "power lunch. i'm tyler matheson here's what's ahead, an economic hurricane. that's what jamie dimon says that's ahead and investors should brace themselves. his two big concerns is the fed and the ukraine war. plus short energy, it is a bold, bold call on this ye

we invested in coinbase in 2015 for $10 million and then we exited that stake last year after coinbaseic. i think we did it to get smarter about the market. we do have a crypto future on our ice futures u.s. platform but until there is clarity around regulation around crypto, i think it is a bit challenging. it is challenging to do more because you need to understand the rules of the road. i think you will see the institution no investor continued cash institutional investors -- institutional investor shying away from that as an asset class. >> i am sure you're watching all markets. i am curious if you see liquidity shifting in the other markets of the world? the right market seems to be extremely volatile. we have seen large intraday moves. as your perspective that the markets are equally well-functioning to the stock market right now? >> the treasury markets continue to function well. the interest rates derivative markets continue to function well. our parent company is the home of the european interest-rate market because we live in a global economy. we are seeing record volumes in

. >>> first it was uber and coin sc coinbase and meta. amy zhang is here with three special stock picks for you. it is thursday, june 9th this is "worldwide exchange. >>> welcome or welcome back. good thursday morning. thanks for being with us 5:30 a.m. on the east coast. here is how the markets and your money look green on the screen. stock futures are higher across the board. not by a lot they are up. dow futures up 82. nasdaq up .20 of 1%. we end there we pretty much gain back -- it has been a pretty good week. we're actually higher on a thursday morning which we have not been able to say i'll leave it there. stock futures are in the green two days this week we're down nine of the last 11 weeks. all that as oil continues to move higher. crude oil hitting $122 yesterday. below that right now highest level since the weird march 8th time right when putin's war began and oil briefly spiked to $130 a barrel. that was a one or two day phenomena. this is a steady climb back up natural gas at $8.30 speaking of oil. check out this stat of the d

coinbase went public.e did it really to get smarter about the market. we actually do have a crypto future on our i future u.s. platform, but until there is clarity around the regulation around crypto, i think it's a bit challenging. ethic it's a bit challenging to do more because you really need to understand the rules of the road. so i think you will probably see the institutional investor continuing to shy away from the asset class until the rules of the road are really codified and understood. >> i'm sure you watch all markets across the board, you are not just stuck in the stock market all day long. i'm curious if you see liquidity shifting out all over the world, notably the rate markets seem to be extremely volatile relative to last years. we see this very large move. is your perspective that markets are equally well-functioning to the stock market right now? >> absolutely, the treasury markets continue to function, the derivative market continues to function well. our parent company is actually the

morgan and applies to coinbase, the biggest u.s.rying over some losses from yesterday, this is due in part to crypto prices on the decline, but analysts at j.p. morgan down grading this stock. they've taken the target price, which is $171 before, and then cut it down to 68 bucks. if you're looking for a reason why, they're saying the decline in crypto prices are going to make profitability not likely. we'll keep an eye on those trades i'll send things back over to you. >> they were at 171. >> of 8. kind68 >> kind of a mea culpa >> for more on the market selloff and the impact on retail investors, we're going to bring in joe moglia, the former ceo of td ameritrade. and joe, you have been doing their this a long time what is different this time around or does this rhyme >> you go back to the dotcom bubble burst march 2000 to 2003. i don't think anything was as painful as 2007 and 2008 but this is a tough one. i don't think the situation today is what the financial crisis was but it's serious and we've talked before about recession. i

coinbase is in our top ten these are going to be huge opportunities.n find them in big ideas 2022 is it going ton robinhood. ftx? we don't know. all we know is the opportunity is huge. >> when you talk about digital property rights, it kind of takes me back to the potential problem for all the crypto customers in the event of a coinbase bankruptcy. in the idea that they would lose their funds with that liquidation, too what i was most surprised by, by watching all of the bitcoin collapse in recent weeks was the idea of how many of these companies were levered up. how many of these big investors were levered one that. didn't that come as a surprise to you >> no, it didn't it didn't come as a surprise this, there's a cleansing process. we're going to see it regularly. this is very early on in these technologies, and, you know, we looking, you can see in the traditional asset management world, the reach for yield there. you know, we're wondering, if you're looking at spreads gapping out in the high yield market, you're looking at credit default swaps in t

its price has been cut in half and that is spilling over to coinbase a recession is not great crypto.com blockfi all companies trimming their workforce tightening their belts and preserving the storm to weather the storm that's coming. fears of recession and things like higher interest rates industry specific news including a crypto company called celsius freezing customer's ability to withdraw money that has been shaking investor confidence there are some diehards that believe in the long-term potential. >> bitcoin will lead the markets back out of this fed hike. the moment the fed flinches, the moment powell pauses because the economy is really starting to roll over, they're going to see bitcoin explode more >> reporter: and, shep, some investors are now just searching for a bottom and they see this as an opportunity to buy at discounted prices. >> crypto has been volatile. now there are celebrity endorsements how are they doing now >> reporter: shep, it depends when they got in for the most part, not good. el salvador is the first country that started buying bitcoin. it started in sep

. >> bryn, you have exposure, you own gray scale bitcoin trust which is gbtc, as well as coinbase andthereum. >> so i think investors need to understand you have three analogs coming together in this nascent space. equivalent of the bubble bursting, long term capital management and bernie madoff sprinkled in you don't have federal reserve to come in and save that that's what sam is trying to do, come in and be a back stop to try to stop some hemorrhaging. i think there's been so much carnage, there's been a lot of trust lost i think it will take quite a bit of time for all of this to settle i'm just unclear i feel somewhat confident there's potentially more shoes to drop just because the system was so levered up, so i think as an investor i'm in the space i have it sized right and it is long term, but i am incredibly disappointed with some bad actors and just how some of what's happening inside crypto looks more like the worst of old school finance than the promise of decentralization and all of that block chain and crypto hopefully for longer term. it is not a good time now. once aga

coinbase and robinhood have seen a slowdown you would think that would be a hit in terms of what they could afford i'm told that might be a reason they may not be able to afford a robinhood deal they have been doing m&a and shopping around here and likely taking advantage of the drop in valuations and the opportunity here also seen as a life line for companies that don't have the fed. he's been seen as propping up some of the companies. a failure of a big crypto company not seen as a great thing could really weigh on his business as well >> it's fascinating. so many echoes of history whether it was the original jpmorgan or the financial crisis very active with the space under pressure kate, thank you very much. our kate rooney reporting. >>> still ahead, the renaissance ipo etf, names like robinhood, down 50% and for a lot of components it's even worse this name down 70% year to date. why does my next guest say it's a buy? a special ipo edition of 3 buys and a bail straight ahead. ♪ in any business, you ride the line between numbers and people. what's right for the business and what's

is goldman sachs telling people to get rid of coinbase?word, sell is what they're saying so we're looking at sub-20,000 this morning for bitcoin and there are concerns about contagion and defaults from one of the world's largest crypto hedge funds three arrows and by the way in terms of the crypto markets 2 trillion wiped out out of 3 trillion so you're down to 1 trillion right now and coinbase is getting a downgrade from goldman, a sell only worth $45 instead of 70 and some say crypto is facing a lehman moment with collapsing companies including that $10 billion hedge fund, three arrows which borrow ed from other crypto banks and exchanges so think of the contagion effect when they can't payback their debt. $600 million worth, back to voyager digital by the way one name being floated that the could possibly go under because of the risk. stuart: but at these crypto conferences that you've been to is the mood sort of doom and gloom? >> subdued. they've been humbled all that type and glitz is pretty much been wiped out and you saw that last