According to Woofun AI, Morgan Stanley (MS.US) issued a strongly bearish signal on Coinbase Global, Inc. (COIN.US) on Monday, slashing its price target from $258 to $120 — a reduction of roughly 53% — pointing directly to the cryptocurrency trading platform's profit recovery being significantly slower than the market had previously anticipated.

Analyst Michael Cyprys noted in the report that recent weak trading trends, a dim revenue outlook, and market uncertainty triggered by the $6.3 billion hack of Binance together formed the core rationale behind the downgrade.

Although Morgan Stanley (MS.US) still maintains Coinbase Global, Inc. (COIN.US) as one of the strongest competitors in the crypto space, it expects the company's earnings recovery to fall short of earlier forecasts, which will continue to weigh on the stock's performance.

This adjustment closely follows Coinbase Global, Inc. (COIN.US) releasing its third-quarter earnings report on October 29, which showed net revenue falling about 34% year-over-year to just $1.16 billion; thanks to gains on cryptocurrency investments, the company posted net income of $719 million and adjusted net income of $78 million.

Data compiled by Woofun AI shows that crypto-related stocks suffered a sell-off on Friday following the earnings release, with Coinbase Global, Inc. (COIN.US) dropping more than 13% intraday amid fallout from the Binance hack, while Circle (CRCL.US) fell over 9% and Strategy (MSTR.US) declined about 8%.

As of the time of writing, Coinbase Global, Inc. (COIN.US) shares remain in a downtrend, falling more than 3.3% to $138.

This valuation reset marks institutions repricing the earnings certainty of crypto-native assets, and represents a stress test of leading exchanges' risk resilience following escalating regulatory uncertainty.