Odaily Planet Daily report: Investment bank Mizuho has significantly lowered its target price for the crypto trading platform Gemini from $26 to $12, a decline of more than 50%, primarily due to weak trading performance offsetting the positive impact of credit card business growth.
Analysts Dan Dolev and Andrew Jenkins noted that weakening cryptocurrency asset prices and declining platform trading volumes are expected to limit Gemini’s short-term revenue growth. Although the company’s card business continues to expand, it is not sufficient to offset the decline in its core trading business.
The report also notes that Gemini's revenue mix is shifting, with service-based income expected to approach nearly half of total revenue. Additionally, the compression of overall exchange valuation multiples has contributed to the downward revision of the target price.
Market data shows that Gemini's stock price previously dropped to a historic low of $5.50 before slightly recovering.