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

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 response to a number of analysts.

The U.S. crypto trade’s shares might acquire 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 companies, in response to these analysts.

These offers ought to allow Coinbase to submit stronger monetary leads to subsequent quarters, offsetting the detrimental affect 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 information reveals.

The decline got here a day after Coinbase clocked $1.5 billion in whole income, or 6% lower than analysts’ estimates, in response to the corporate’s newest monetary report. Its adjusted earnings (ebitda) have 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 couple of silver linings in its newest report that would place the trade to see vital income progress within the close to future. Bernstein analysts highlighted these initiatives in a notice dated July 31.

For starters, Coinbase acquired crypto-focused derivatives trade Deribit, which can enable 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 mentioned of their notice.

They added that Coinbase just lately unveiled its plans to develop into an “every little thing trade” that might allow betting on real-world occasions and buying and selling tokenized real-world belongings, equities, derivatives, and early-stage token gross sales—a significant growth past the agency’s core companies.

The initiative would diversify the crypto trade’s income, probably 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 notice dated August 1, H.C. Wainwright & Co. analysts additionally pointed to Coinbase’s current partnership with J.P. Morgan, the U.S.’ largest financial institution, as one other shiny spot within the firm’s second-quarter report.

Underneath the settlement, JPMorgan Chase shoppers will have the ability to hyperlink their Chase accounts to Coinbase to fund their accounts on the crypto trade, which might enhance Coinbase’s buyer base and finally bolster its backside line. And utilizing Base, Coinbase’s decentralized community, clients can even have the ability to trade their Chase rewards factors for Circle’s USDC stablecoin.

“Not too long ago introduced partnerships with among the largest U.S. banks to materially speed up crypto adoption,” might develop Coinbase’s important line of enterprise, H.C. Wainwright & Co analyst mentioned within the notice.