Coinbase Stock Soared with Bitcoin’s Rise. Now Its Earnings Are a Worry.

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Wall Street has tempered its expectations for


Global’s second quarter. Two analysts called out a potential slowdown in trading volumes at the cryptocurrency exchange.

Coinbase will report the results on Aug. 6, according to FactSet. Shares have climbed 27% so far this year, responding to strong first-quarter results and gains in the price of Bitcoin, which help drive trading activity in cryptocurrencies. Coinbase, one of the largest exchanges, makes money from fees on crypto trades.

But now, investors should expect “a more mild second quarter,” wrote Mizuho analyst Dan Dolev in a Tuesday note.

Crypto markets have cooled off recently: The price of Bitcoin fell 11% last month, which may have hurt Coinbase’s revenue and trading volumes. Dolev estimated that second-quarter total trading volumes ranged from $215 billion to $220 billion, compared with $312 billion in the first quarter.

Dolev has had a Sell rating on the stock since late 2022. His current target of $145 for the price implies a decline of 34% from Monday’s close.

He isn’t alone in predicting a weak second quarter. Raymond James analyst Patrick O’Shaughnessy, who rates Coinbase stock at Market Perform, also cut his estimates in a Tuesday note. He now expects second-quarter trading volume of $214.8 billion, down from an earlier estimate of $252.2 billion.

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Both analysts see second-quarter revenue of about $1.3 billion, a decline of about 19% decline from the quarter before. Their estimates are below the broader market consensus of $1.409 billion, which has also dropped from $1.414 billion a month ago.

Coinbase didn’t respond to questions from Barron’s.

To be sure, analysts’ estimates still point to better trading volume than a year ago, when the market was reeling from interest-rate increases and the collapse of FTX, Sam Bankman-Fried’s crypto exchange. In the year-ago second quarter, total trading volumes came in at just $145 billion.

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Still, an underwhelming earnings report after a strong start to the year could put pressure on the stock. On Tuesday, the stock gained 1.5% after initially declining. Over the past month, it has declined by 8.7%.

Write to Karishma Vanjani at

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