Shares of Coinbase Global Inc (NASDAQ: COIN) fell nearly 8% to $141.65 on Thursday, February 12, as investor sentiment remains cautious ahead of the company’s fourth-quarter earnings report.
Historical trends show that Coinbase stock often experiences post-earnings volatility, with six of the last eight reports leading to declines the next day, although the stock has averaged a 7.9% gain during those sessions.
Platform issues and reassurance
The exchange also faced operational disruptions on Thursday, with users reporting difficulty buying, selling and transferring cryptocurrencies on the Coinbase website.
The company reassured customers on social media, saying: “Your funds are safe,” and later confirmed that the technical issues had been resolved.
Downgrades
Adding to investor concerns, Monness, Crespi, Hardt & Co. downgraded Coinbase to sell, citing overly optimistic assumptions about a crypto market recovery. The brokerage cut its price target by 68% to a low of $120 and lowered its revenue and profit forecasts through 2027. The downgrade follows at least five other February price target cuts by Wall Street analysts, with Coinbase shares down nearly 40% year to date.
Bitcoin pressure weighs on Coinbase
The cryptocurrency market continues to create headwinds for Coinbase. Bitcoin fell 2.5% on Thursday to $65,427, down 23.5% for the year and more than 45% from its October high near $126,000. According to Alex Kuptsikevich, chief market analyst at FxPro Group, a trading range between $60,000 and $70,000 is likely over the coming weeks as speculative demand wanes. The broader crypto market has lost nearly $2 trillion in value over the same period.
CEO stock sales fuel volatility
Adding to the market unease, Coinbase CEO Brian Armstrong sold off more than 1.5 million shares between April 2025 and January 2026. Shares fell 5.7% on Wednesday to close at $153.20, down from $162.52 the day before. COIN stock has traded as high as $262 this year and remains in a 52-week range from around $142 to $444.
After a turbulent year for crypto and a 44% drop in its stock over the past month, investors are closely watching Coinbase’s ability to maintain profitability.
The upcoming earnings report will be a key indicator of whether the company can navigate a challenging crypto market and maintain its trading revenue amid continued volatility.
