Coinbase Shares Sink 12% After $359 Million Q2 Loss Misses Estimates
Updated
Updated · Yahoo Finance · Jul 31
Coinbase Shares Sink 12% After $359 Million Q2 Loss Misses Estimates
3 articles · Updated · Yahoo Finance · Jul 31
Summary
More than 12% of Coinbase's market value evaporated Friday, putting the stock on track for its sharpest one-day drop in nearly a year after the exchange posted a wider-than-expected second-quarter loss.
$359 million in net loss, or $1.36 a share, reversed a $1.43 billion profit a year earlier and badly missed analysts' expected $0.44-a-share loss.
Core operations also weakened as net revenue fell 17% to $1.15 billion, transaction revenue dropped 22% to $600 million, and adjusted EBITDA slid 59% to $208 million.
A softer crypto market with lower prices and volatility hurt trading activity, while rivals such as Robinhood and Charles Schwab benefited from stronger non-crypto trading.
Mizuho cut its Coinbase price target to $155 from $200, even as management pointed to record Coinbase One memberships and subscription revenue that still made up 48% of quarterly sales.