Why Coinbase Stock Is Lower After a Blowout Earnings Report
Coinbase stock is tumbling Friday as investors take profits following the crypto platform's impressive fourth-quarter results. Here's what you need to know.


Coinbase Global (COIN) stock dropped sharply out of the gate Friday even after the cryptocurrency exchange far surpassed top- and bottom-line expectations for its fourth quarter.
In the three months ending December 31, Coinbase's revenue increased 138.2% year over year to $2.3 billion. Its earnings per share (EPS) more than quadrupled from the year-ago period to $4.68.
"Coinbase delivered strong Q4 and full-year 2024 results," the company said in its shareholder letter. "Zooming out, the last few months have demonstrated a sea change in the regulatory environment, unlocking new opportunities for Coinbase and the crypto industry."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results trounced analysts' expectations. Wall Street was anticipating revenue of $1.9 billion and earnings of $1.81 per share, according to CNBC.
Coinbase also said trading volume nearly tripled year over year to $439 billion, thanks to a 224% increase in consumer trading volume to $94 billion and a 176% surge in institutional trading volume to $345 billion.
"Crypto's voice was heard loud and clear in the U.S. elections, and the era of regulation via enforcement that crippled our industry in the U.S. is on its way out," Coinbase added. "The Trump administration is moving fast to fulfill its promise of making the U.S. the crypto capital of the planet, and globally, leaders are taking notice and increasing their attention and investment into crypto."
Is Coinbase stock a buy, sell or hold?
Heading into Friday's session, Coinbase Global shares had doubled on a year-over-year basis, so the post-earnings pullback could be a result of investors taking some profits. Still, Wall Street thinks the financial stock has more room to run.
According to S&P Global Market Intelligence, the average analyst target price for COIN is $320.71, representing implied upside of nearly 15% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Needham is one of those with a Buy rating on the large-cap stock alongside a $330 price target.
"We view Coinbase as an attractive way to play the growing crypto asset universe, which includes overlap in the high-growth areas of stablecoins, decentralized finance (DeFi), non-fungible tokens (NFTs), exchanges in spot/derivatives, and blockchains (Base)," says Needham analyst John Todaro.
Over the long term, Todaro expects the company to "broaden its applications to include a variety of crypto-related financial services activities," while near-term growth will come from "its staking offering as more crypto networks move to a proof-of-stake consensus algorithm and its stablecoin interest account offerings."
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Nvidia Stock's Been Growing for Years. Just Look At Its 100,000% Return
Nvidia shareholders have had to stomach intense volatility over the years, but they have come out on top thanks to the AI chipmaker's bellwether status.
By Louis Navellier Published
-
The 'Concerning Trends' in Retirement Now
Americans are less satisfied with their life in retirement and cite inflation and higher healthcare costs as just two of the problems they're facing.
By Janet Bodnar Published
-
Nvidia Stock's Been Growing for Years. Just Look At Its 100,000% Return
Nvidia shareholders have had to stomach intense volatility over the years, but they have come out on top thanks to the AI chipmaker's bellwether status.
By Louis Navellier Published
-
10 Tax Topics Every Retiree Should Know About
A little knowledge can go a long way toward saving on your tax bill. Print this out and take it to your tax planner so you can have a productive chat.
By Michael Miller Published
-
It's No Surprise That Berkshire Hathaway's in the 100,000% Return Club
Warren Buffett's fascination with the insurance industry has helped Berkshire Hathaway's stock return snowball.
By Louis Navellier Published
-
4 Turnaround Stocks to Consider – and 2 More to Keep an Eye On
A turnaround stock is a struggling company with a strong makeover plan that can pay off for intrepid investors.
By Nellie S. Huang Published
-
Facing a Layoff? Ask Your Employer These Questions Now
If you're being laid off or forced into early retirement, don't make any decisions without proper guidance — and that starts by asking some key questions.
By Ben Maxwell, ChFC®, AAMS® Published
-
Stock Market Today: Dow Jumps 674 Points in Friday's Relief Rally
The gains weren't limited to stocks, though, with gold futures closing above the $3,000 per ounce mark for the first time.
By Karee Venema Published
-
Have $1M+ Saved? Consider a Financial Planning One-Stop Shop
A 'one-stop shop' team — including a financial planner, estate planning lawyer, CPA and more — could serve all of your tax, estate and retirement planning needs.
By Joe F. Schmitz Jr., CFP®, ChFC® Published
-
Stock Market Today: Stocks Drop on Trump's EU Tariff Threats
The White House said alcohol imports from the European Union could soon face tariffs of 200%.
By Karee Venema Published