These 2 Nasdaq stocks hit all-time lows on Tuesday

Wall Street had another down day on Tuesday, and this time it didn’t look like the market would be able to rebound until the end of the trading session. Starting at 2:30 p.m. ET, the Nasdaq Compound (^IXIC -3.93%) fell nearly 3% to 12,645, coming within 100 points of its worst levels of a year ago and further exacerbating the bear market decline the index has suffered.

Many Nasdaq stocks contributed to the decline, but a few top-tier stocks took much bigger hits and saw their stock prices fall to unprecedented lows. Below we will take a closer look at why Coinbase Global (PIECE OF MONEY -5.91%) and Robinhood Markets (HOOD -3.80%) hit all-time lows on Tuesday and what the future may hold for their respective stocks.

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Coinbase degrades

Shares of Coinbase Global fell more than 4% on Tuesday. That put the stock at an all-time low and nearly 60% below the closing price of $304.54 per share it set immediately after its IPO a year ago today. today.

Coinbase’s fortunes are intertwined with the cryptocurrency markets it serves, and the news wasn’t particularly good. Most of the major crypto assets saw significant declines, with even the largest registering declines of 2% to 3% and some of the more speculative digital tokens taking bigger hits. When crypto prices are falling, investors who use Coinbase’s platform to trade tend to be less excited about their markets, indicating the potential for lower earnings going forward.

More generally, investors are uncertain whether Coinbase has a sustainable competitive advantage over competing crypto brokers. Coinbase relies on trading revenue which, in turn, is tied to a higher fee structure than what some of its competitors offer. As investors in the crypto space become more sophisticated, they are less likely to stick with a high-cost broker like Coinbase unless the company finds a way to more fully differentiate itself. So far this has not happened.

Coinbase hopes to continue to further integrate cryptocurrencies into mainstream investing. It remains to be seen whether he can be an indispensable part of the ecosystem he is trying to put in place.

Robinhood does not give to the poor

Elsewhere, shares of Robinhood Markets fell around 3%. This sent the app-based stock trading platform to all-time lows. The share price is now close to 90% below its highest price in the week following its IPO at the end of July 2021.

Robinhood hit the market at a time when stocks were generally doing well, and investors had flocked to its user-friendly app to take advantage of opportunities in areas such as stocks and cryptocurrencies. Over the past six months, however, there has been a marked deterioration in investor sentiment, particularly among momentum-driven short-term traders who tended to use Robinhood’s app the most.

Some investors remain hopeful about Robinhood’s prospects. They highlight the company’s efforts to flesh out a more comprehensive financial services platform, including the ability to link bank accounts and participate in securities lending. Robinhood is also rolling out extended trading hours in an effort to entice more investors to consider buying and selling investments for more of the day, especially during popular off hours.

At this point, however, Robinhood is experiencing massive losses and it’s unclear if the company will have enough access to capital to turn the corner. This is why the stock is at an all-time low and a rebound could take a long time to materialize.

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