Why Coinbase Global (COIN) Stock Crashed Yesterday

We recently compiled a list of the Traders Flee These 10 Stocks Today. In this article, we are going to take a look at where Coinbase Global, Inc. (NASDAQ:COIN) stands against other stocks that crashed yesterday.

Wall Street’s main indices ended mixed on Thursday as investors continued to digest a series of first-quarter earnings and key economic data.

Among the three indices, only the Nasdaq registered losses, down 0.18 percent. In contrast, the Dow Jones grew by 0.65 percent while the S&P 500 rose by 0.41 percent.

Meanwhile, 10 companies registered hefty losses during the session, battered by a flurry of negative news, missed estimates, and a weak outlook for the rest of the year. In this article, let us explore the 10 companies that lag in performance and identify the reasons behind their decline.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.

A shot of someone securely accepting crypto assets as payment, showcasing the company’s payment solutions.

Coinbase Global, Inc. (NASDAQ:COIN)

Coinbase Global, Inc. (NASDAQ:COIN) dropped its share prices by 7.2 percent on Thursday to close at $244.44 apiece as investor sentiment was dampened by news that its customer data was stolen, held for ransom, and could potentially cost the company up to $400 million.

Coinbase Global, Inc. (NASDAQ:COIN) said in a regulatory filing on Thursday that it received an email from an unknown party on Sunday claiming that it accessed the cryptocurrency exchange’s customer database by paying multiple contractors and employees working in support roles outside the US. The cryptocurrency exchange said the cybercriminals demanded as much as $20 million in ransom to sweep the incident under the rug.

Coinbase Global, Inc. (NASDAQ:COIN), however, said it refused to pay the demanded amount, but underscored that the issue could cost between $180 million to $400 million to fix underlying issues and reimburse affected customers.

Overall, COIN ranks 10th on our list of stocks that traders flee today. While we acknowledge the potential of COIN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than COIN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.