Coinbase Price Target Slashed Amid Weak Q2 Results
Coinbase's second-quarter results disappointed investors and analysts alike, leading Freedom Broker to lower its price target on the stock.
The company reported diluted GAAP earnings per share of negative $1.36, compared with consensus expectations of negative $0.44. Adjusted EPS came in at negative $0.40 versus the consensus estimate of positive $0.12.
Total revenue of $1.22 billion declined 14% sequentially and missed the Street expectation of $1.29 billion by roughly 5%. This led to a significant decline in the stock price, with a 12.8% drop over the past week contributing to a 54% decline over the past year.
Average analysts have revised their earnings downwards for the upcoming period, reflecting growing concerns about near-term profitability.