Gemini Stock (NASDAQ:GEMI) Initiated Neutral at Goldman Sachs

Gemini's stock (NASDAQ:GEMI) has pulled back 20.97% from the closing price on its public listing date less than 1 month ago, (12 Sep), as the street looks for a value. The cryptocurrency exchange, founded by Cameron and Tyler Winklevoss, has experienced both initial enthusiasm and subsequent concerns regarding its financial performance, contributing to significant stock price fluctuations.

Some fresh coverage from Goldman Sachs, initiating on Gemini with a “Neutral” rating, indicates a view that the stock is fairly valued from it's recent close ($25.29).

Goldman Sachs analyst James Yaro's “Neutral” rating came with a $25 price target, suggesting a marginal downside from here. While acknowledging Gemini's rapid growth and potential to gain market share, Yaro highlighted concerns regarding the company's cyclical nature and profitability challenges. These reservations appear to be weighing on the stock's performance.

Gemini's IPO generated substantial investor interest, initially pricing shares at $28, valuing the company at approximately $3.3 billion. The offering was oversubscribed by more than 20 times, leading Gemini to cap the proceeds at $425 million. Nasdaq also committed $50 million in a concurrent private placement.

On its first trading day, the stock opened at $37.01, a 32% premium over the IPO price, and peaked at $45.89 before closing at $32, a 14% increase from the IPO price.

However, this initial surge proved short-lived. By September 16, Gemini's stock had declined nearly 24% from its initial trading price, closing at $30.42. This downturn was attributed to investor anxieties surrounding Gemini's financial performance, including a net loss of $283 million reported for the first half of 2025, and a valuation of 26 times its annualized revenue. 

While Gemini possesses growth potential, its profitability and susceptibility to market cycles remain significant concerns. The initial enthusiasm surrounding the IPO has given way to a more cautious assessment of the company's long-term prospects.

The analyst's rating reflects a market searching for stability in a rapidly evolving and volatile sector.