Coinbase Stock Plummets After Earnings Miss
Coinbase's stock price plummeted more than 5% in early trading on Friday after its second-quarter earnings report missed market expectations.
The company reported revenue of $1.22 billion, falling short of analysts' predictions of $1.29 billion, according to Koyfin data.
Brian Armstrong, Coinbase's CEO, emphasized the company's efforts to diversify beyond cryptocurrency trading, highlighting its push into recurring revenue streams through products like stablecoins, payments, custody, derivatives, and subscription services.
Critics pointed to slower crypto trading volumes and softer third-quarter guidance as factors contributing to the price drop. Goldman Sachs reduced its price target on COIN stock to $173 from $198 while BTIG lowered its forecast to $240 from $260, both maintaining a 'Buy' rating.