Needham Slashes Price Target on Gemini Space Station Amid Crypto Weakness

Gemini Space Station's stock price target was cut by Needham from $8.00 to $6.00 while maintaining a Buy rating, citing ongoing crypto weakness and higher than expected losses.

The company reported revenue in line with expectations but missed on net income due to these losses. Despite this, management guided to an improved expense outlook, which partially offset the impact of volume weakness.

However, the July increase in crypto volume proved short-lived, as August is on track to end approximately 18% lower. The company's Card segment is expected to moderate after an identity fraud event led to an increase in provision for credit losses in the portfolio.