Traders Flee These 10 Stocks Today

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.

Investors sold off shares of Coinbase Global, Inc. (NASDAQ:COIN) on Thursday after it was revealed that customer data was stolen and could cost the company up to $400 million.

Coinbase Global, Inc. (NASDAQ:COIN) shares dropped 7.2 percent to close at $244.44.

What Happened: Coinbase Global, Inc. (NASDAQ:COIN) said in a recent filing that it received an email on Sunday from an unknown party who claimed they gained access to the company’s customer database by engaging in an elaborate scheme.

The party, who identified themselves as a “group of skilled individuals,” claimed they paid multiple contractors and employees in support roles located in countries like India, the Philippines, China, and Vietnam to disable internal security measures.

Furthermore, they asserted that they managed to siphon off a "significant portion" of Coinbase Global, Inc. (NASDAQ:COIN)’s customer funds.

"We are writing to inform you that we have complete access to Coinbase's customer database, including email addresses, phone numbers, full names, and complete account statements," the email read.

The party also threatened to leak the data and disclose details of how they breached Coinbase Global, Inc. (NASDAQ:COIN)’s systems if their demands for cryptocurrency were not met within 96 hours.

However, Coinbase Global, Inc. (NASDAQ:COIN) clarified that the claims regarding customer funds theft were false, and the party did not manage to withdraw any cryptocurrency from the exchange.

Despite refusing to engage with the extortionists, Coinbase Global, Inc. (NASDAQ:COIN) estimated that the incident could result in a substantial loss, ranging from $180 million to $400 million. This estimation takes into account the cost of remedying underlying issues with customer support and the potential for customer restitution.

See Also: Top 50 Dividend Stocks For Income In 2023

Why It’s Important: Among the three main indices on Wall Street, only the Nasdaq experienced a decline on Thursday, with investors continuing to process a series of first-quarter earnings reports and macroeconomic data.

The Nasdaq fell by 0.18 percent, while the Dow Jones rose by 0.65 percent and the S&P 500 increased by 0.41 percent.

In total, 10 stocks on the Top 1000 stocks list clocked in a loss of more than 8 percent and experienced an unusually high trading volume of more than 5 million shares.

The stellar first-quarter earnings season, which saw strong performances from large-cap companies like Apple Inc. (NASDAQ:AAPL) and Microsoft Corp. (NASDAQ:MSFT), seems to be fizzling out.

Despite the impressive earnings reports, market participants are becoming increasingly concerned about the upcoming earnings season for smaller-cap companies, which could potentially disappoint investors.

Moreover, with the Federal Reserve expected to keep interest rates at higher levels for an extended period to curb inflation, investors are anticipating slower economic growth in the coming months.

This shift in economic momentum could negatively impact the earnings outlook for smaller companies, especially those operating in the lower tiers of the market capitalization hierarchy.

As smaller companies are usually rated as ‘Hold’ or ‘Sell’ by a majority of analysts, any further decline in their earnings estimates could trigger price adjustments from analysts.

In the case of Coinbase Global, Inc. (NASDAQ:COIN), it is ranked 10th on our list of stocks that traders are fleeing today. While we recognize the potential of COIN as an investment, our belief is that AI stocks present an even greater opportunity for delivering higher returns within a shorter time frame.

One particular AI stock has already seen its share price triple since the beginning of 2025, while popular AI stocks have lost approximately 25 percent of their value. If you are searching for an AI stock with outstanding potential that is valued at less than 5 times its earnings and trades at a low price-to-book multiple, be sure to read our report on the cheapest AI stock to buy now.

Read Next: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Buy Now According to Billionaires

This article is written by Benzinga and edited by Ivan Đelić.