Coinbase fell 11% after the earnings report, its worst day in more than a year | Wilnesh News

Coin library Shares were under pressure on Thursday after the company reported lower-than-expected profits and gave a tepid revenue outlook for the current quarter.

The stock fell 11%, putting it on track for its biggest drop since June 2023, when it fell 12.1%. The broader market decline also weighed on Coinbase.

Other cryptocurrency-related stocks also fell. Robin HoodThe company also reported a weak earnings report on Wednesday, sending its shares down 15%. miner Mara Holdings and Anti-riot platform fell 8% and 11% respectively.

BitcoinCoinbase, which typically has a larger influence on prices, fell 2% this week after hovering just below all-time highs.

JMP Securities analyst Devin Ryan attributed this to temporary liquidation of positions in cryptocurrency-related names, saying it was an opportunity for long-term investors in Coinbase and Robinhood.

“There’s a lot going on here in the next few months — (such as) the U.S. election (and its aftermath) — that will become a bigger story in this space, not to mention the recent appreciation in cryptocurrency prices. If this trend continues over the next two months, transaction volume could put upward pressure on fourth-quarter revenue.

“In the short term, people are going to have to recalibrate their models to accommodate hybrid adoption assumptions,” or the percentage of revenue Coinbase gets from transactions, he said. “There are no structural changes happening here, but spreads are lower as stablecoin trading volumes increase, and the implied revenue guidance for Q4 is a bit soft.”

Oppenheimer analyst Owen Lau, who has a buy rating on Coinbase, attributed Thursday’s decline to warnings that trading volumes could remain subdued and that lower U.S. interest rates could weaken Coinbase The growth of stablecoin revenue.