Coinbase (NASDAQ:COIN) shares tumbled more than 14% on Friday, touching their weakest level in over two years, after a wave of Wall Street price-target reductions followed the exchange's third-quarter report. A broad retreat in digital assets and unease over a reported $6.3 billion Binance hack compounded the selling pressure across crypto-linked equities.
Bitcoin slid as much as 4.8% over 24 hours to roughly $76,900, dragging related names lower. Circle Internet Group lost 10.7%, while Strategy fell 8.88%, underscoring the sector-wide nature of the decline rather than a Coinbase-specific reaction.
Analysts trim targets after mixed quarter
Needham, Rosenblatt, JPMorgan, Barclays and other firms revised their Coinbase price targets downward following the earnings release. The company posted earnings of $2.51 per share, far above the $0.08 consensus estimate tracked by Koyfin, but revenue of $1.21 billion came in just shy of the $1.22 billion expected.
Barclays cut its target to $120 from $149 while keeping an Underweight rating, citing a revenue run rate entering the fourth quarter that was trending lower and costs likely to exceed prior projections. The bank also made a sizeable reduction to its near-term EBITDA forecasts. Needham lowered its target to $197 from $205 but retained a Buy rating, acknowledging the earnings beat while flagging softer near-term revenue prospects as trading activity cooled.
New products cushion weak trading
Coinbase's push beyond conventional spot trading has provided some offset. Rosenblatt analyst Chris Brendler called the quarter the "clearest evidence yet" that the company's Everything Exchange strategy is gaining traction, with newer offerings absorbing part of the trading slowdown that would otherwise have hit revenue harder. Wells Fargo pointed to prediction markets and USDC as areas softening the weaker crypto backdrop, though it said the results did not signal a broader acceleration in business activity.
JPMorgan analyst Kenneth Worthington noted the transaction environment remains difficult and that valuing the expanding prediction markets business is challenging. Goldman Sachs highlighted Coinbase's scale, profitability, distribution, expense discipline and expansion into prediction markets and crypto derivatives as supports for its competitive position.
Coinbase said its prediction markets business has surpassed $200 million in annualised revenue. Net income reached $719 million, helped by roughly $715 million in gains on crypto investments. Adjusted net income, excluding investment gains and other items, was $78 million, while net revenue fell about 34% year over year to $1.16 billion.
Binance hack adds to sector anxiety
The downgrades landed alongside fresh security concerns after the reported $6.3 billion Binance hack, which has raised questions about cybersecurity across the industry even though there is no specific indication that Coinbase or Circle face similar exposure. Needham warned that developments around Binance had unsettled crypto markets and flagged AI-driven hacking risks as a sector concern heading into 2027.
Binance said it has set aside more than $6.34 billion in company funds to cover losses, including $5 billion already held in the affected tokens, and is working to recover about $3 billion in frozen assets. The episode could carry wider consequences if it discourages trading activity or reduces stablecoin usage, since lower volumes would weigh on the business activity of both Coinbase and Circle.
This article is for informational purposes only and does not constitute financial advice.
