Skip to content

Coinbase stock just collapsed 

Diana Paluteder

Coinbase (NASDAQ: COIN) reported a sharp drop in quarterly profit on Thursday, July 31, that sent shares tumbling, with the crypto exchange posting adjusted net income of $33 million, or 12 cents per share, compared to $294 million, or $1.10 per share, in the same quarter last year. 

COIN stock 1-day chart. Source: Google Finance

Shares were trading at $320.93, down 15.04% at press time Friday.

Why is Coinbase stock down?

Coinbase’s troubles centered on weak trading activity as crypto market volatility dropped and retail investors held onto their digital assets rather than trading. Consumer spot trading volume was $43 billion, down 45%, while consumer trading revenue fell 41% to $650 million. Total trading volume declined 40%.

Adjusted net income came in at $33 million, or 12 cents per share, in the three months ended June 30, compared with $294 million, or $1.10 apiece, a year earlier, an 89% drop that caught investors off guard. Total revenue was $1.5 billion with adjusted EBITDA of $512 million.

The earnings miss was brutal. Wall Street had expected $1.51 per share, making the 12-cent result a 92% shortfall. Revenue of $1.5 billion also missed forecasts of $1.59 billion.

Not everything was grim. Revenue from the company’s subscription and services unit rose 9.5% to $656 million, mainly driven by stablecoin-related activities.

Stablecoin revenue came in at $332.5 million in the second quarter, up from $240.4 million in the year-earlier. The company got a boost from new legislation, with the U.S. House passing the GENIUS Act to create a regulatory framework for stablecoins.

COIN stock 12-month price target

Despite the poor results, Citizens JMP maintained its $440 price target and Market Outperform rating after the earnings results, suggesting the stock could climb 36% from current levels.

Citizens JMP’s model primarily considers Coinbase’s existing business operations and does not factor in potential contributions from the concept of the “everything exchange,” which could potentially support significant growth in coming years. The firm noted that investors who can handle volatility may benefit from what it called “tremendous optionality” in the stock.

COIN stock 12-month forecast. Source: TipRanks

According to market analysis platform TipRanks, the average target price for COIN is $383.29 for the next 12 months, with the most optimistic analysts predicting it could reach $510.00. The most bearish outlook sees the stock falling to $205.00.

Featured image via Shutterstock.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users worldwide
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Latest posts

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Stocks

Finbold AI Agent

How AI Price Predictions Work

We use cutting-edge AI models to forecast future prices for stocks and crypto.

Trade, Swap & Stake Crypto on Uphold

Buy, sell, and swap crypto. Stake crypto, earn rewards and securely manage 300+ assets—all in one trusted platform. Terms apply. Capital at risk.

Get Started

IMPORTANT NOTICE

Finbold is a news and information website. This Site may contain sponsored content, advertisements, and third-party materials, for which Finbold expressly disclaims any liability.

RISK WARNING: Cryptocurrencies are high-risk investments and you should not expect to be protected if something goes wrong. Don’t invest unless you’re prepared to lose all the money you invest. (Click here to learn more about cryptocurrency risks.)

By accessing this Site, you acknowledge that you understand these risks and that Finbold bears no responsibility for any losses, damages, or consequences resulting from your use of the Site or reliance on its content. Click here to learn more.