The stock of Coinbase Global (COIN) is down 3% after the largest U.S. cryptocurrency exchange reported mixed financial results.
The company run by CEO Brian Armstrong announced earnings per share (EPS) of $1.94, which was slightly ahead of the $1.93 forecast on Wall Street. Revenue in the year’s first quarter totaled $2 billion, up 24% from a year ago but below the $2.1 billion consensus forecast of analysts.
The latest print was issued on the same day that Coinbase Global announced a deal to acquire leading crypto options exchange Deribit for $2.9 billion. COIN stock rose 5% on May 8 heading into its earnings on news of the Deribit purchase.
Trading volume at Coinbase. Source: Main Street Data
Trading Slowdown
With cryptocurrency prices and the stock market whipsawing between gains and losses, many investors have moved to the sidelines and are sitting in cash. Consequently, trading volumes on Coinbase’s platform have slumped.
Transaction revenue dropped 19% quarter-over-quarter to $1.3 billion, while subscription and services revenue grew 9% to $698 million, thanks mostly to stablecoin revenue, said the company. Looking ahead, Coinbase guided for lower current-quarter subscription and services revenue of between $600 million and $680 million.
Management noted that the total market capitalization of cryptocurrencies worldwide fell 19% to $2.7 trillion in this year’s first quarter from the fourth quarter of 2024. COIN stock has declined 17% this year.
Is COIN Stock a Buy?
The stock of Coinbase Global has a consensus Moderate Buy rating among 22 Wall Street analysts. That rating is based on 12 Buy, nine Hold , and one Sell recommendations assigned in the last three months. The average COIN price target of $271.05 implies 37.59% upside from current levels. These ratings are likely to change after the company’s financial results.
