Why is COIN Stock Falling More Than 8% Today?

• Coinbase is expected to report largely flat revenue in the fourth quarter compared to the year-ago quarter.
• BTIG lowered the firm's price target on Coinbase to $340 from $420.
• An analyst at BTIG said it sees an attractive entry point at current share levels.

Shares of Coinbase (COIN) fell more than 8% on Thursday weighed by weakness in bitcoin and investors turning their attention to its upcoming fourth quarter earnings, scheduled for next week. 

An analyst at BTIG has also slashed the price target on Coinbase saying it sees an attractive entry point at current share levels, as per TheFly. 

Q4 Preview

Coinbase is expected to report largely flat revenue in the fourth quarter compared to the year-ago quarter. Analysts’ project a revenue of $1.86 billion in the quarter which is nearly flat to $1.84 billion it posted in the same quarter a year ago. 

Coinbase is expected to post a 50% drop in its quarterly profit. As per data from fiscal.ai, Coinbase is expected to post a profit of $1.01 per share, compared to $2.04 it posted in the year-ago quarter. 

Bitcoin Weakness

Bitcoin has been falling sharply over the past few weeks as investors continue to stay clear of riskier assets like cryptocurrency due to macroeconomic-induced pullback. The rout has worsened especially since Donald Trump announced Kevin Warsh as the nominee to become the next Federal Reserve chair. 

The world’s largest cryptocurrency has also been seeing billions of outflows in its ETFs and has been struggling to cross the $80K levels. Bitcoin earlier in the day plunged below $68,000 levels and hit its lowest in 15 months. At the time of writing, BTC was down 6.4% to $68,305. 

Downbeat Analyst

BTIG lowered the firm's price target on Coinbase to $340 from $420 and kept a ‘Buy’ rating on the shares ahead of the Q4 report on February 12. 

The firm said that the stock has fallen 49% since the Q3 report, compared to the total crypto market cap falling 32%. BTIG attributed Coinbase's selloff expectations for Q4 weakness in transaction volume relative to Q3 and the broader market. 

The firm said it sees an attractive entry point at current share levels. Coinbase is "creating a flywheel" between its trading business and digital asset applications, contends the analyst. BTIG sees the Q4 report showcasing how the company's revenue has diversified beyond "volatile" transaction revenues.

How Did Stocktwits Users React?

Retail sentiment around COIN trended in ‘bullish’ territory amid ‘high’ message volume. 

Shares in the company have fallen 46% over the past 12 months. 

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