COINBASE STOCK PLUNGES 17% AFTER EARNINGS MISS — COMPETITION HEATS UP
Coinbase’s blue-chip momentum hit a wall last week, dropping 17% after a disappointing earnings report — the second-largest post-earnings decline in its history. After hitting a $106B valuation following its S&P 500 inclusion, the rally has stalled amid rising pressure from lower-cost rivals like Robinhood, Kraken, and soon-to-be-public Gemini and Bullish.
Analysts are questioning Coinbase’s ability to maintain its high transaction fees as the trading landscape becomes more competitive. CFO Alesia Haas admitted the slowdown was partly due to the firm’s controversial decision to start charging for stablecoin trades. The result? A tough tradeoff between margin and market share.
Coinbase is responding with expansion: stock trading, prediction markets, and custody services are all on the roadmap — alongside the recent acquisition of Deribit and the rollout of perpetual futures for U.S. users. Still, with $9B in cash, a strong partnership with Circle, and bold ambitions to become the “everything exchange,” Coinbase isn’t backing down.
But with Robinhood trading at a higher multiple and new players aggressively entering the market, COIN’s premium is at risk. Analysts remain split — some cite long-term opportunity, others warn of margin pressure and over-reliance on crypto trading. The next quarter will be critical.
