COIN Stock Drops After Wall Street Price Target Cuts On Q1 Earnings Miss – Retail Traders Say HOOD Had It Worse

• Piper Sandler, Clear Street, Barclays, and Bank of America all lowered their price targets on Coinbase following the earnings report.
• Retail traders on Stocktwits said they were surprised Coinbase shares did not fall more sharply after earnings, especially compared with Robinhood’s post-earnings selloff.
• Coinbase also experienced a major overnight outage tied to an AWS disruption that affected crypto services globally.

Shares of Coinbase (COIN) dumped in early-morning trade on Friday after a slew of price targets from Wall Street, following the company posted a quarterly loss and first-quarter earnings miss. 

Clear Street, Barclays, Piper Sandler, and Bank of America (BofA) all trimmed their outlook on COIN’s performance, as per TheFly. The company reported a loss of $1.49 per share, while Wall Street was expecting earnings of $0.04 per share, according to Koyfin data. Revenue came in at $1.41 billion, missing analyst estimates of $1.47 billion. 

COIN’s stock dropped as much as 3% in pre-market trading, while retail sentiment on Stocktwits around the company trended in ‘neutral’ territory, with ‘high’ levels of chatter. 

Some retail traders on the platform were surprised that COIN’s stock didn’t take a bigger hit, considering that Robinhood (HOOD) shares saw a much bigger drop after their first quarter (Q1) earnings missed Wall Street’s expectations and revenue from cryptocurrency trading dipped.

Wall Street Cuts Price Targets After Weak Quarter

Clear Street analyst Owen Lau cut the price target on COIN’s stock to $244 from $277 and maintained a ‘Buy’ rating. The firm said weaker subscription and services revenue weighed on results, though it “green shoots” for Coinbase in the form cost controls and improving regulatory clarity as potential positives moving forward.

BofA also trimmed its target to $218 from $234 while reiterating a ‘Buy’ rating. The bank said higher technology and development spending, combined with softer trading activity, contributed to the earnings miss. However, it said Coinbase’s efforts to diversify beyond trading revenue remain encouraging.

Meanwhile, Barclays lowered its target to $107 from $140 and kept an ‘Underweight’ rating on the shares. The firm said transaction revenue trends remained weaker than expected, even with contributions from prediction markets and retail derivatives trading.

Piper Sandler cut its price target on Coinbase to $170 from $180 and kept a ‘Neutral’ rating on the shares.

Coinbase Misses Q1 Earnings On Crypto Weakness

Coinbase’s earnings reflected weaker trading activity across the crypto market during the quarter. Transaction revenue fell 40%, while subscription and services revenue, which includes products outside traditional trading, declined 13.5% from a year earlier.

“Macro conditions were genuinely tough,” Coinbase chief financial officer Alesia Haas told investors during the earnings call. “Total crypto market cap and total crypto trading volume were both down more than 20% quarter-over-quarter.”

The softer results came during a period of declining digital asset prices and lower retail trading participation. Consumer trading volumes dropped 36% quarter-over-quarter, according to BofA.

AWS Outage Adds To Investor Concerns

Coinbase also faced operational challenges overnight after a major Amazon Web Services (AWS) outage disrupted crypto-related services globally for more than five hours. The outage added another layer of concern for investors already focused on slowing trading activity and weaker quarterly results. 

Bitcoin (BTC) struggled to hold onto $80,000 in Thursday morning after military fire was exchanged between the U.S. and Iran, casting doubt on the peace deal hopes that fueled market momentume earlier this week. At the time of writing, Bitcoin’s price has recovered to around $80,200, still down 0.9% in the last 24 hours. Retail sentiment around the apex cryptocurrency on Stocktwits remained in ‘bullish’ territory, accompanied by ‘high’ levels of chatter. 

Read also: Tom Lee Says BMNR May Pull Back On Ethereum Buys – ‘There’s Other Things To Be Doing In Crypto Right Now’

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