Coinbase Misses Revenue Expectations as Stock Slips

Coinbase reported disappointing Q2 results, missing expectations on revenue and earnings. The company's total revenue of $1.22 billion was down 19% year-over-year, falling short of a consensus estimate of $1.32 billion.

Brian Armstrong, Coinbase's Co-Founder and CEO, said the company hit its third consecutive all-time high in crypto trading volume market share, but this didn't translate to higher earnings. He emphasized that Coinbase is not just a bet on Bitcoin's price, but rather a leader in updating traditional financial services with cryptocurrency.

The stock dipped 5.6% to $154.42 in pre-market trading. Several analysts adjusted their price targets following the earnings announcement. BTIG analyst Andrew Harte maintained a Buy rating and lowered his target from $260 to $240, while Needham's John Todaro also kept a Buy rating but cut his target from $220 to $177.