Coinbase stock jumped by 5% on Friday, a day after the top crypto exchange reported weak financial results, including falling revenues and soaring losses.
Summary
- Coinbase share price bounced back after publishing its financial results.
- Its revenue declined, and its profits fell as expenses rose and crypto prices fell.
- Top Wall Street analysts maintained their bullish outlook while lowering their targets.
Coinbase shares jumped to $147, well above the year-to-date low of $140. It remains well below the all-time high of $445.
Top analysts maintained a buy rating on COIN stock
The rebound came after H.C. Wainwright maintained its buy rating on the company and set a $350 target. A move to that target would imply a 135% surge from the current level.
The company’s analysts noted that Coinbase had become a bargain after the recent crash, pushing it to its lowest level since 2024.
Additionally, they noted that the company would benefit from the CLARITY Act, which has been stuck in the Senate Banking Committee. A meeting between banks and companies in the crypto industry at the White House failed to resolve the key issue of allowing stablecoin rewards.
Other Wall Street companies maintained their buy rating on Coinbase stock even as they lowered their target price. Chris Brender of Rosenblatt Securities lowered the target price from $325 to $240, while Needham’s John Todaro slashed it from $290 to $230.
Benchmark’s Mark Palmer also slashed the target from $421 to $267. As a result, the average target among Wall Street analysts dropped to $303 from $400 three months ago.
Coinbase reported weak financial results on Thursday and blamed the ongoing crypto market crash. Its transaction revenue dropped to $982 million in the fourth quarter from $1.5 billion in Q4’24. This slowdown was offset by an increase in subscription and services revenue, which jumped to $727 million.
Coinbase reported significant quarterly losses after marking down its crypto assets like Bitcoin (BTC) and Ethereum (ETH). Its operating costs continued rising as it aims to become the “everything exchange”.
The company has invested in several key products, which it hopes will boost its revenue in the future. For example, it recently unveiled a prediction marketplace and aims to become a stockbroker by introducing tokenized stocks.
A major risk for Coinbase stock is that some analysts expect Bitcoin to remain under pressure in the near term. In a note on Thursday, analysts at Standard Chartered lowered their Bitcoin target to $100,000 and warned it could drop to $50,000.
Coinbase stock price technical analysis
The weekly chart shows that the COIN stock price has crashed in the past few months as Bitcoin and most altcoins have plunged. It dropped to a key support level, marking the lowest swings since September 2024.
The coin remains below all moving averages, while the Relative Strength Index has moved to the oversold level of 30, its lowest swing since 2023.
Therefore, the most likely scenario is where it resumes the downtrend, potentially to the key support level at $100.
