The Coinbase logo appears on a cell phone screen with stock market percentages in the background.
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Coinbase Shares were under pressure Thursday, a day after the company reported weaker-than-expected earnings and gave a tepid revenue outlook for the current quarter.
The stock lost 15.3%, its biggest decline since May 2022, when it fell 19.5%. A broader market decline has also put pressure on Coinbase.
Other crypto-related stocks also fell. Robin Hoodwhich also reported weak profits on Wednesday, fell 16%. Minors Mara Holdings And Riot platforms slipped 8% and 11%, respectively.
Bitcoinwhich often has a big influence on Coinbase’s price, slipped 2.78% to $69,918.66 after remaining below its all-time high of $73,000 this week.
Coinbase over the past year
Devin Ryan, an analyst at Citizens JMP, attributed this to a temporary slowdown in crypto-related names and called it an opportunity for long-term focused investors in Coinbase and Robinhood.
“There will be a lot of things happening here over the next few months – (like) the US election (and) its ramifications – that will become a much bigger story for the space, not to mention the recent price appreciation crypto.
“In the short term, people will have to recalibrate their models a little bit for the mixed take rate assumption,” or the percentage of revenue Coinbase keeps from a transaction, he said. “Nothing structural happened here, but as stablecoin trading volume increased, that translates into a lower spread, and the Q4 implied revenue guide was a little soft.”
Owen Lau, an analyst at Oppenheimer with a buy rating on Coinbase, attributed Thursday’s decline to the warning that subdued volume could persist in the future and that falling U.S. interest rates could reduce growth stable revenue from Coinbase.
