Coinbase shares fell 12.8% to $140.05 by 14:55 UTC on Friday, after touching $136.90, the first full session since the exchange reported its third-quarter results and the morning after the Binance hack, according to Yahoo Finance data. CryptoWatchDesk last covered Coinbase on Friday morning, when its filings showed trading revenue down 44% and profit lifted by a $715 million crypto gain.
The sell-off is about the fourth quarter more than the third. Coinbase said transaction revenue was about $165 million in the quarter through 25 Oct, against $590 million for the whole of the third quarter. Mizuho now projects about $607 million for the fourth quarter, roughly 11% below consensus before the results, Investing.com reported.
Mizuho cut its price target to $145 and kept a Neutral rating, citing weak core trading and the risk of losing retail share to Robinhood, according to Investing.com. Barclays analyst Benjamin Budish lowered his target to $120 from $149 and kept an Underweight rating, saying the revenue run rate into the fourth quarter is trending lower, TheFly reported. Jefferies trimmed its target to $174 from $183, Investing.com said.
The rest of the sector fell with it. Strategy was down 7.5%, Circle 8.3% and Robinhood 8.0% at 14:55 UTC, after crypto stocks opened lower in the wake of the Binance theft, TheStreet reported. BlackRock’s bitcoin ETF, IBIT, lost 4.7%, close to bitcoin’s own fall since Thursday’s US close.
That gap is the useful number. Peers lost about 8%; Coinbase lost about 13%.
The difference is a rough measure of what investors think its own quarter cost it. For the wider session, see Friday’s Market Read.
This article is for information only and is not investment advice.