Wall Street analysts slash Coinbase (COIN) price targets after Q4 miss — but shares still rally
Despite missing Q4 earnings, Coinbase shares rose 12% as analysts cut price targets due to weak trading but noted long-term business model improvements.Summary
Coinbase shares increased by 12% on Friday even though the crypto exchange missed fourth-quarter earnings expectations. The company reported net revenue of $1.71 billion against estimates of $1.81 billion, and adjusted EBITDA of $566 million versus consensus of $653 million. Analysts from firms like Barclays, Benchmark, Clear Street, and JPMorgan reacted by cutting their price targets, citing weak retail trading, higher operating expenses, and macro headwinds. Barclays' Benjamin Budish lowered the target to $149, calling Q4 a "miss across the board." However, several analysts maintained a bullish long-term view, pointing to Coinbase's growing derivatives business, expanding product suite, increasing USDC market share, and the growing Coinbase One subscriber base as signs of a more "diversified and durable" business model. Clear Street noted pressure on consumer monetization but highlighted that Coinbase now has 12 business lines generating over $100 million in annualized revenue. Coinbase management reiterated its commitment to remaining adjusted EBITDA positive across market cycles, supported by $14.1 billion in resources, and confirmed ongoing stock buybacks and Bitcoin accumulation.
(Source：CoinDesk)