Why Analysts Aren’t Worried by Coinbase’s Stock Dive After Earnings Miss

COIN plunged 17% on Friday, only a day after Coinbase posted principally disappointing earnings outcomes. However traders shouldn’t rush to promote shares of the corporate’s inventory simply but, in keeping with a number of analysts.

The U.S. crypto alternate’s shares might achieve floor once more because it closes a number of strategic partnerships and acquisitions that stand to broaden its buyer base for its rising crypto and non-crypto providers, in keeping with these analysts.

These offers ought to allow Coinbase to put up stronger monetary ends in subsequent quarters, offsetting the detrimental impression of the corporate’s lower-than-expected income and weaker buying and selling volumes for the second quarter on its inventory value, they added.



COIN completed Friday buying and selling at $314.69, about 25% beneath its 52-week excessive of $419.78 reached in July, Yahoo Finance knowledge reveals.

The decline got here a day after Coinbase clocked $1.5 billion in complete income, or 6% lower than analysts’ estimates, in keeping with the corporate’s newest monetary report. Its adjusted earnings (ebitda) had been $512 million in the identical interval, down 13% from the second quarter of 2024.

Coinbase’s lackluster monetary outcomes coincided with a drop-off in cryptocurrency buying and selling volumes because the Iran-Israel battle got here to a head and U.S. President Donald Trump’s back-and-forth tariff talks stoked investor jitters. However, the buying and selling platform additionally reported a number of silver linings in its newest report that would place the alternate to see important income progress within the close to future. Bernstein analysts highlighted these initiatives in a word dated July 31.

For starters, Coinbase acquired crypto-focused derivatives alternate Deribit, which can permit the platform to roll out perpetual futures within the U.S. and capitalize on the extremely worthwhile derivatives market, the analysts famous.

“This could drive improved buying and selling volumes in H2-already mirrored in guided July transaction revenues,” Bernstein analysts stated of their word.

They added that Coinbase lately unveiled its plans to turn into an “every part alternate” that may allow betting on real-world occasions and buying and selling tokenized real-world property, equities, derivatives, and early-stage token gross sales—a significant growth past the agency’s core providers.

The initiative would diversify the crypto alternate’s income, doubtlessly decreasing the impact of crypto buying and selling quantity dips on Coinbase’s income throughout downturns within the digital asset market, Bernstein analysts famous.

In a word dated August 1, H.C. Wainwright & Co. analysts additionally pointed to Coinbase’s latest partnership with J.P. Morgan, the U.S.’ largest financial institution, as one other vibrant spot within the firm’s second-quarter report.

Beneath the settlement, JPMorgan Chase purchasers will be capable of hyperlink their Chase accounts to Coinbase to fund their accounts on the crypto alternate, which might enhance Coinbase’s buyer base and in the end bolster its backside line. And utilizing Base, Coinbase’s decentralized community, prospects may also be capable of alternate their Chase rewards factors for Circle’s USDC stablecoin.

“Just lately introduced partnerships with a number of the largest U.S. banks to materially speed up crypto adoption,” might broaden Coinbase’s major line of enterprise, H.C. Wainwright & Co analyst stated within the word.