5 Tech Stocks to Avoid As Inflation Heats Up

In this article, we discuss the 5 tech stocks to avoid as inflation heats up. If you want to read about some tech stocks to avoid amid rising inflation, go directly to 10 Tech Stocks to Avoid As Inflation Heats Up.

5. Coinbase Global, Inc. (NASDAQ:COIN)

Number of Hedge Fund Holders: 29  

Loss in Share Price Year-to-Date as of September 21: 72% 

Coinbase Global, Inc. (NASDAQ:COIN) provides financial infrastructure and technology for the crypto economy. On September 19, the company announced that it would be updating the fee structure on the platform to represent changes in global crypto trading volumes and prices. The firm said it would lower the monthly trading volume required to qualify for the mid and upper tiers of our fee schedule by late September. The move comes as the firm struggles to cope with the impact of falling crypto prices. 

On September 14, investment advisory JPMorgan maintained a Neutral rating on Coinbase Global, Inc. (NASDAQ:COIN) stock and raised the price target to $78 from $64. Analyst Kenneth Worthington issued the ratings update. 

At the end of the second quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Coinbase Global, Inc. (NASDAQ:COIN), compared to 46 in the preceding quarter worth $2.3 billion. 

In its Q2 2022 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Coinbase Global, Inc. (NASDAQ:COIN) was one of them. Here is what the fund said:

“Coinbase Global, Inc. (NASDAQ:COIN) fell during the quarter as the crypto markets continued to suffer. While the company reported disappointing results, it committed to capping EBITDA losses at $500M even in the event of “a prolonged market downturn”. COIN’s ample liquidity ($6b in cash on hand) should enable them to survive a prolonged “crypto winter” and invest to strengthen the business in the downturn. While the crypto market is early in its adoption, Coinbase is focused on building the platform for crypto not only supporting trading, and cold storage, but moving into NFTs, staking, and crypto derivatives. We see tremendous upside potential for COIN over the next decade if they are able to successfully execute on their platform strategy.”