Coinbase Reports Q4 Loss, Analysts Adjust Price Targets
- Coinbase posted a net revenue of $1.71 billion, missing Wall Street estimates of $1.81 billion.
- The company reported a net loss of $667 million, largely due to a $718 million unrealized loss on its crypto investment portfolio.
- Barclays analyst Benjamin Budish lowered his price target for Coinbase to $149 from $258, citing weak transaction revenues.
- Benchmark’s Mark Palmer maintained a buy rating but cut his price target to $267 from $421, highlighting Coinbase’s growing derivatives business.
- Coinbase has now established twelve business lines generating over $100 million in annualized revenue.
Despite the disappointing quarterly results, analysts noted positive trends such as increased share in the USDC market and a growing subscriber base for Coinbase One. The company continues to focus on diversifying its offerings and maintaining adjusted EBITDA positivity across market cycles.
With a net loss of $667 million and multiple price target reductions from analysts, Coinbase is navigating challenges while expanding its revenue-generating business lines significantly. (Source)
