COIN Stock Sinks To Over 2-Year Low As Bitcoin Sinks Below $77K, Wall Street Cuts Price Targets

• Barclays cut its price target on Coinbase, citing that a weaker revenue run rate and higher costs could prompt a “sizeable downgrade” to near-term EBITDA estimates.
• Wells Fargo said prediction markets and USDC helped cushion the impact of weak crypto trading activity, but the quarter showed little evidence of a broader acceleration.
• Meanwhile, Rosenblatt called the third quarter “the clearest evidence yet” that Coinbase’s “Everything Exchange” strategy was working.

Coinbase (COIN) shares fell to a more than two-year low in morning trading Friday after analysts cut price targets following its third-quarter results, which beat on earnings but missed revenue expectations, amid a broader Bitcoin (BTC) sell-off.

COIN stock dropped over 13% to lows last seen in February 2024. Meanwhile, adding to the pressure on crypto equities, Bitcoin’s price fell as much as 5.5% in the last 24 hours to around $77,000. 

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Both COIN and BTC were among the top trending tickers on Stocktwits at the time of writing. Retail sentiment around both assets trended in ‘bearish’ territory over the past day. 

Wall Street Cuts Coinbase Price Targets After Q3 Results

Needham, Rosenblatt, JPMorgan, Barclays and others lowered their price targets on Coinbase, according to analyst notes reported by The Fly. Coinbase reported earnings of $2.51 per share, beating the consensus estimate of $0.08, according to Koyfin. However, its revenue came in at $1.21 billion, slightly shy of the expected $1.22 billion.

While the firms maintained their existing ratings, analysts pointed to weak crypto trading activity, a softer revenue outlook and rising costs. Some also highlighted the exchange’s expanding product lineup as a potential buffer against weakness in spot trading.

Barclays cut its price target to $120 from $149 and maintained an ‘Underweight’ rating. The firm said the revenue run rate heading into Q4 was trending lower and that costs were expected to come in higher than anticipated, prompting a “sizeable downgrade” to its near-term earnings before interest, tax, depreciation and amortization (EBITDA) estimates.

Meanwhile, Wells Fargo said prediction markets and USDC helped cushion the weak crypto backdrop, but the quarter did not signal a broader acceleration. JPMorgan analyst Kenneth Worthington added that the transaction environment continued to struggle and that it was difficult to assign value to Coinbase’s growing prediction markets business.

New Products Help Cushion Spot Trading Weakness

Several analysts said Coinbase’s expansion beyond spot crypto trading is helping the company withstand a subdued market.

Rosenblatt analyst Chris Brendler called the company’s Q3 “the clearest evidence yet” that Coinbase’s “Everything Exchange” strategy was working, with new products absorbing continued weakness in crypto trading that would otherwise have weighed more directly on revenue.

Goldman Sachs also said Coinbase’s scale, profitability, distribution, expense discipline and expansion into prediction markets and crypto derivatives supported its competitive positioning. The firm cautioned, however, that the weaker outlook could prompt a modestly negative market reaction despite the quarterly beat.

Binance Incident Adds To Crypto Market Concerns

The price-target cuts came amid renewed volatility in crypto markets following developments surrounding the Binance exchange. Needham lowered its target to $197 from $205 while maintaining a ‘Buy’ rating, saying the Binance developments had roiled crypto markets just as Coinbase reported earnings. The firm also flagged AI-derived hacking risk as a key concern for the crypto sector heading into 2027.

The Binance incident involved a reported $6.3 billion hack, prompting the exchange to halt unauthorized outflows and investigate the breach. Binance later said investigators had uncovered “additional points of breach” beyond initial suspicions involving a compromised employee’s laptop. 

The exchange stated it had reserved more than $6.34 billion in company funds to cover losses, including $5 billion already held in the affected tokens, and said it was working to recover about $3 billion in frozen assets. 

Read also: INTC Stock Heads For Worst Day In Over 2 Years: Jefferies Calls Q4 A ‘Substantial’ Reset Amid Slew Of Wall Street Price Cuts, Downgrades

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