Coinbase (NASDAQ:COIN) released its Q2 earnings this week, and the numbers landed with a thud.
While Coinbase executives highlighted the positive aspects of its business, markets looked at top-line revenue and net income, which disappointed investors.
Today, shares of Coinbase are in full retreat, currently trading at around $150 a share. Coinbase closed regular market trading yesterday at over $163 so the market cap has declined dramatically in less than 24 hours.
Much of the decline has been driven by a drop in crypto trading and the price of Bitcoin, which has bounced around $60,000 to $65,000. In the near term, if the US Senate gets its act together, Coinbase could catch a bid if the CLARITY Act is signed into law. Yes, hope springs eternal.
In the long run, Coinbase is betting on being the “everything exchange,” the one platform to serve them all, offering access to all asset classes, including private securities, on a global basis. The combination of crypto, traditional, and bank-like services makes a lot of sense. But this will take some time.
So what are the analysts saying? The majority of buy-side analysts covering the company still expect shares to move higher, keeping a buy rating on the firm. While most have trimmed price targets, the majority anticipate a better price in the not-too-distant future.
See the current analyst ratings below.
