Coinbase stock dives after Q1 earnings miss, risk disclosure, Goldman downgrade

Coinbase Global (NASDAQ:COIN) stock is tumbling 23% in early Wednesday trading after the cryptocurrency exchange's Q1 earnings missed, Q2 trading volume is declining, and the company disclosed a new risk factor in an SEC filing. In addition, Goldman Sachs downgraded the stock to Neutral from Buy, saying the company is unlikely to reach recent levels of profitability in the near term unless crypto prices increase. "In an environment where the market is focused on profitability, recession risk, and the fading of pandemic-driven exuberance in retail trading, we believe COIN's stock will struggle to outperform in the near term," the Goldman analyst said in a note to clients. In the new risk factor, Coinbase (COIN) said new protections for its retail customers in a "black swan" event haven't yet been tested in court specifically for crypto assets, CEO Brian Armstrong said. "It is possible, however unlikely, that a court would decide to consider