Coinbase Stock Tumbles on Wider-Than-Expected Quarterly Loss

Coinbase stock plummeted by more than 13% in early market trading after reporting a wider-than-expected quarterly loss of $359.5 million, or $1.36 per share.

This marks the third straight quarter that Coinbase has missed Wall Street's revenue and earnings forecasts, with analysts having modeled a loss of just $0.23 per share.

The company's net income often swings wildly due to accounting rules, which require it to mark its large crypto holdings to market value at the end of each quarter.

Despite this, the underlying business had real soft spots, with subscription revenue and transaction revenue both missing expectations and coming in lower than the prior year.