Coinbase shares rose 12% on February 13 despite the exchange missing fourth-quarter revenue and profit expectations. The company reported net revenue of $1.71 billion, below the Wall Street consensus of $1.81 billion, and adjusted EBITDA of $566 million, short of the estimated $653 million. GAAP net losses totaled $667 million, driven by $718 million in unrealized losses on its crypto portfolio and $395 million in strategic investment losses.
Several analysts responded by lowering price targets. Barclays reduced its target to $149, citing weak transaction and subscription revenues alongside higher operating costs. Benchmark halved its target to $267 while maintaining a buy rating, highlighting growth in derivatives, stablecoin adoption, and product diversification. Clear Street and JPMorgan also cited near-term earnings pressure, weak retail engagement, and macroeconomic headwinds in their revisions.
Despite the shortfall, Coinbase emphasized its growing derivatives platform, stablecoin infrastructure, and subscription offerings. The company continues stock buybacks and bitcoin accumulation, supported by $14.1 billion in liquidity, signaling resilience and diversification beyond trading revenues. Institutional adoption and multiple revenue streams provide context for the stock’s positive market response.
