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Citi Downgrades Gemini Space Station to Sell With $5.50 Target as Stock Slides Below $6

Citi cites plunging user growth with profitability now pushed to 2029, as Thursday’s results will test the turnaround.

Overview

  • Shares fell 5.1% premarket to $6.75 and later traded below $6 on Wednesday, leaving the stock down about 28% this year after a $28 IPO in September.
  • Citi cut its price target to $5.50 from $13 and estimates a 2025 adjusted EBITDA loss of $263 million, extending the path to positive EBITDA to 2029 or later.
  • App downloads dropped to about 41,000 in February after nine straight months above 100,000, reflecting weakening engagement and network effects.
  • Management has moved to cut roughly 25% of staff, exit the UK, EU and Australia, and has seen the COO, CFO and chief legal officer depart.
  • Regulatory uncertainty persists as progress on the CLARITY Act remains stalled, with investors looking to Thursday’s after‑hours fiscal‑year report for updates on restructuring progress.