Shares shifted sharply lower as Coinbase extended its post-Q1 slide to $187.39, now down 13.5% from just a week ago, after a broad-based earnings miss collided with a wave of analyst price-target cuts and a darkening crypto backdrop.
Trading Revenue Fell Off a Cliff — And Took Profits With It. Revenue came in at $1.41 billion, down 31% year over year, missing the $1.52 billion estimate.
GAAP earnings per share swung to a loss of $1.49 versus expectations for a $0.27 profit. The culprit: crypto spot trading volumes fell 37%, and transaction revenue dropped 40% year over year.
Operating margin cratered to negative 1.5%, from positive 34.7% a year earlier — meaning Coinbase went from keeping roughly a third of every revenue dollar as operating income to losing money on operations.
Wall Street Responded With a Cascade of Target Cuts. JPMorgan lowered its price target to $283 from $290, keeping an Overweight rating.
Baird slashed its target to $160 from $200, maintaining Neutral.
Needham cut to $220 from $230 , and Monness Crespi, a bear, lowered to $110.
Analyst views are now scattered between $150 and $220 on the cautious end, signaling deep uncertainty about where the floor is.
700 Layoffs Signal Management Knows the Downturn Could Last. Coinbase is cutting roughly 14% of its workforce — 700 jobs — with $50–60 million in restructuring charges expected in Q2.
The company framed the move as an AI-driven restructuring , but the cuts underscored Wall Street expectations that subdued trading conditions could persist into the second quarter.
New Products Are Growing, But Too Small to Offset the Core Decline. Derivatives volume surged 169% year over year to $4.2 billion , and the prediction-market business is on pace for $100 million in annualized revenue. Yet these remain a fraction of the $756 million in transaction revenue that still drives the business. Management's tone on its subscription-and-services segment — recurring fees from staking, stablecoins, and memberships — was notably cautious , suggesting it is not yet the stable earnings cushion the long-term story requires. Until crypto trading rebounds or newer bets scale meaningfully, investors are paying a premium for a promise that the numbers haven't yet delivered.