Coinbase Slides on Weak Q2 Earnings and Price Target Cuts

Shares of Coinbase (COIN) dropped over 5% in pre-market trade after a slew of price target cuts from Wall Street following the company's second-quarter earnings report, which missed market expectations.

The weak quarter was attributed to lower crypto trading volumes and softer third-quarter guidance. Despite this, BTIG and Clear Street said Coinbase continues to gain market share and diversify its business beyond spot trading.

Investors are also watching the progress of the CLARITY Act, which could establish a clearer regulatory framework for digital assets in the U.S.

The slide in Coinbase shares comes amid weakness in Bitcoin (BTC), which fell around 1% in the last 24 hours and slipped below the $64,000 mark. COIN's stock has fallen nearly 30% this year and is down almost 60% in the last 12 months.