Coinbase reported a 22.2% year-over-year decline in net revenue to $1.71 billion. The company posted a net loss of $2.49 per share. A downturn in cryptocurrency prices and lower trading volumes drove the financial results. Adjusted earnings of $0.66 per share missed analyst expectations. Morningstar lowered its fair value estimate for the stock following the report.
Mizuho analyst Dan Dolev reduced the Coinbase price target to $170 from $280. This revision represents a cut of nearly 40%. Dolev maintained a Neutral rating on the stock. The analyst cited lower Bitcoin prices as the primary reason for the revision.
Several other financial institutions also reduced their price targets last week. Coinbase shares fell approximately 2% in pre-market trading. The decline reflects negative sentiment and a concurrent slip in Bitcoin's price.