Why Analysts Aren't Worried by Coinbase's Stock Dive After Earnings Miss

Key Points

1. Coinbase's stock fell to $314.69, 25% below its 52-week high, after reporting $1.5B in Q2 revenue (6% below estimates) and $512M in adjusted EBITDA (down 13% YoY).

2. The decline coincided with broader market jitters from U.S. tariff talks and lower crypto trading volumes.

3. Analysts noted positive developments, including Coinbase's acquisition of Deribit to expand into derivatives trading and a partnership with J.P. Morgan to integrate crypto services.

4. The J.P. Morgan deal allows clients to trade crypto and convert Chase rewards points into USDC stablecoin, potentially accelerating mainstream adoption.

5. Despite short-term financial underperformance, analysts remain optimistic about Coinbase's long-term growth from strategic expansions.