Coinbase Stock Tumbles 15% Amid Q2 Dip, Bernstein Predicts $510 Upside


Coinbase Stock Tumbles 15% Amid Q2 Dip, Bernstein Predicts $510 Upside
Image source: CoinToday
* Coinbase stock falls on 26% Q2 revenue decline and one-time expenses. * Bernstein maintains $510 price target, citing long-term growth potential. On July 31, 2025, Coinbase Global Inc. released its second-quarter earnings report, causing its stock to drop 15%. The company reported a steep 26% sequential revenue decline to $1.5 billion, driven by a 39% drop in transaction revenues. In addition, Coinbase disclosed $307 million in one-time expenses related to data theft, an unrealized $1.5 billion loss from its investment in Circle, and the acquisition of 2,509 BTC. This purchase makes it one of the largest corporate holders of the flagship cryptocurrency. Despite the poor results, Bernstein analysts remain optimistic. According to an August 1, 2025, report from The Block, analysts including Gautam Chhugani minimized the impact of the weak quarter, calling it "the quarter that doesn't matter." They pointed to improving transaction revenue trends in July, which rebounded 44% compared to the Q2 monthly average. The analysts also anticipate more growth from increased market volatility and evolving trading interests in assets like Ethereum (ETH) and Solana (SOL). Bernstein maintained its "outperform" rating for Coinbase and reiterated a $510 price target, basing this valuation on a framework using a 25x multiple of projected 2027 earnings. Analysts affirmed that Coinbase leads in cryptocurrency financial infrastructure, citing several key growth catalysts, including expanded token listings from decentralized exchanges, deeper stablecoin integration, and growth in crypto derivatives. Bernstein also highlighted Coinbase's plan to create an "everything exchange" that integrates tokenized stocks and prediction markets. Bernstein also emphasized that strategic partnerships with major financial institutions like JPMorgan and fintech platforms such as Webull, eToro, and Revolut are vital to Coinbase's position in the digital asset economy. According to CoinMarketCap data at 15:15 UTC on August 1, 2025, several top cryptocurrencies were down. Bitcoin (BTC) was trading at $115,213.43, a 2.42% drop in the last 24 hours. Ethereum (ETH) was priced at $3,611.54, a 4.37% decline, and Solana (SOL) was trading at $168.61, down 4.07%.
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Category
Market
Published
2025-08-01 15:21
NFT ID
PENDING
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