Coinbase Stock Surges After Q4 Miss as Analysts Call It 'Too Cheap to Sell'
Coinbase’s fourth-quarter earnings missed analyst expectations, but its stock surged over 18% following the results. Bernstein analysts maintained an “outperform” rating and a $440 price target for COIN, arguing the stock is undervalued and resilient despite heavy exposure to crypto market volatility. Recent price gains erased weekly losses, yet COIN is still down nearly 50% over six months. Coinbase reported a Q4 net loss of $667 million on $1.78 billion in revenue, mainly due to a $718 million write-down on its crypto portfolio. Transaction revenue dropped 6% to $983 million, reflecting subdued crypto trading activity, but the company’s balance sheet remains strong with $5.4 billion in net cash and assets. Although falling transaction revenue presents risks, Coinbase has diversified, now supporting 12 revenue streams over $100 million annually. For 2025, the company reported $7.2 billion in revenue, 56% from trading fees. Subscription and services revenue grew 23% year-over-year to $2.8 billion, though USDC income was partly affected by lower interest rates. Coinbase emphasizes its strong capitalization to withstand market downturns.
