Coinbase Third-Quarter Revenue Misses Estimates; Shares Fall: Analysts
Coinbase (COIN) shares fell 2% to $207.50 after reporting third-quarter earnings that missed expectations. Total net revenue was $1.1 billion, 3% below forecasts and 5% below consensus estimates, primarily due to lower transaction revenues and a decline in subscription and services revenues. Reduced operating expenses improved adjusted EBITDA. Retail trading volumes exceeded expectations but were offset by a lower retail fee rate. Analysts noted weak fourth-quarter commentary. JMP highlighted growing institutional interest and potential positive impacts from the upcoming U.S. presidential election, which may lead to clearer regulatory frameworks. Canaccord emphasized Coinbase's growth in recurring revenue sources despite market volatility and suggested that regulatory changes could benefit the company. Ratings include market perform with a $165 target, outperform with a $320 target, and buy with a $280 target.
