Morgan Stanley raised its target price for Coinbase shares from $250 to $258 ahead of the earnings report, maintaining an "equal-weight" rating. The new target suggests a growth of about 50% from the closing price of $172. This is a 3.2% increase from the previous forecast, with coverage initiated by the bank on September 10. On the same day, Citizens JMP lowered its target by $45, from $325 to $280, maintaining an "outperform" rating. Relative to $172, this represents a growth of approximately 62.8%. Citizens linked the reduction to the execution still required for expansion beyond crypto trading: more than 40% of revenue already comes from other areas. Citizens' forecast remains $22 above Morgan Stanley's target.
Goldman Sachs confirmed a "buy" recommendation with a target of $244, while Cantor Fitzgerald maintained an "overweight" rating with a target of $212. According to MarketBeat, among tracked analysts, there are 20 "buy" recommendations, 13 "hold," and three "sell," with an aggregated "hold" rating and an average target of $224.29.
On July 30, Coinbase reported revenue of $1.22 billion, down 18.5% from the previous year. Analysts had estimated $1.29 billion, with a loss per share of $1.36 against the expected $0.44. The net loss reached $359.5 million. Transactional revenue was $599 million, consumer trading $452 million, down 30.5% year-over-year. Subscriptions and services generated $555 million, including $292 million from stablecoins. They accounted for 48% of net revenue, with average USDC stablecoin balances on Coinbase products reaching $20 billion. The crypto trading market share hit a record 10.3% compared to 9.1% in the first quarter. Adjusted earnings before interest, taxes, and amortization reached $207.8 million, marking the 14th consecutive quarter with a positive figure. CFO Alesia Haas stated, "Everything Exchange is generating real revenue, not just green shoots."
On July 24, Coinbase announced commission-free trading of stocks and exchange-traded funds for U.S. clients, as well as the replacement of four top executives following a 14% staff reduction. Jesse Pollak focused on the Base blockchain. On September 3, the company reported work on perpetual contracts on individual stocks through two filings: form 1-N from Coinbase Derivatives and form BD-N from Coinbase Financial Markets.
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