Coinbase Global Inc. (COIN) experienced a sharp 11.5% decline in its share price in pre-market trading, settling at $334.48. This significant drop has put approximately $11 billion of the company's market capitalization at risk. The negative market reaction followed the release of Coinbase's second-quarter earnings report, which revealed a lower adjusted profit due to a slowdown in trading activity on its platform. Concerns over the company's valuation have been cited as a contributing factor to the sell-off. Despite this recent downturn, Coinbase's stock has had a strong year, with a 52% increase year-to-date, placing it among the top performers in the S&P 500. The weak quarterly performance has, for now, overshadowed more optimistic long-term outlooks from some analysts. In contrast to the market's reaction, JPMorgan recently upgraded Coinbase's stock to "Overweight" and raised its price target to $404. Analysts at the bank pointed to emerging profit opportunities and decreasing risks, particularly around the potential launch of a token for its Base network, which they estimate could unlock significant value.
Coinbase Shares Plunge on Disappointing Q2 Profit and Valuation Fears
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