Odaily Planet Daily report: After Coinbase reported second-quarter earnings below market expectations, its stock initially dropped to around a two-and-a-half-year low in early Friday trading, before narrowing its losses to around $150. Over the past year, the stock has still declined approximately 57%.
Wall Street generally views Coinbase’s performance this quarter as disappointing, but there is disagreement over the reasons: some analysts attribute it primarily to a weak crypto market environment, while others are beginning to question whether the company’s growth strategy beyond trading can deliver results.
JPMorgan stated that Coinbase's earnings reflect a "challenging crypto environment," with new products contributing minimally to the income statement. The bank lowered its target price for Coinbase as of December 2026 from $196 to $148, while maintaining an "Overweight" rating. JPMorgan believes the company faces pressure across multiple businesses, with weak trading volumes dragging down trading revenue and subscription and service revenue also under strain.
Bernstein, however, believes that Coinbase’s long-term strategy remains attractive, but investors are looking for more compelling execution, particularly in new business areas such as prediction markets and tokenized stocks.
Mizuho warned that Robinhood is becoming the mainstream alternative for retail crypto trading. Overall, Coinbase is still regarded as a key representative of compliant crypto infrastructure in the U.S., but its valuation recovery is increasingly dependent on its ability to prove it is more than just a crypto exchange reliant on trading cycles.