Wall Street Divided on Coinbase’s (COIN) Path Forward After Q3 Earnings Beat

Coinbase's recent Q3 earnings report revealed $1.05 billion in transaction revenue and $801 million in adjusted Ebitda, surpassing Wall Street's expectations. However, analysts are split on the company's future. Some bullish analysts highlight growth in B2B crypto payments, significant partnerships, and potential regulatory benefits, increasing price targets to as high as $510. Conversely, bearish analysts caution about rising operational costs and shrinking margins, reducing targets to as low as $266. Key players like Barclays and Compass Point have shown concerns over cost growth outstripping revenue. In contrast, firms like Benchmark and Citi maintain optimistic stances on the company's potential. They emphasize the rising subscription revenue and new partnerships in 'onchain-as-a-service' with major firms. Analysts agree on Coinbase's expanding role in derivatives and stablecoins but express concerns regarding competitive pressures and declining commission rates. Overall, while short-term performance looks strong, long-term profitability remains uncertain given the industry's volatility and substantial investments in growth.

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