Coinbase shares sink 11% after trading weakness hits quarterly profit
Its stock was last trading at $334.48, on track to wipe out nearly $11 billion of market value if current levels hold.
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"We see the shares as significantly overvalued. We believe that the market is projecting too much future growth for the firm," Morningstar analyst Michael Miller wrote in a note.
The sharp investor reaction underscores the challenge Coinbase, as a major player in the crypto space, faces to sustain its recent strong revenue growth.
Its shares have gained 52% so far this year as of their last close, ranking among the top 15 gainers on the benchmark S&P 500 index, which Coinbase joined in May.
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Analysts, however, said trading volumes could improve this quarter, based on the company's revenue estimates for July.
The month saw a surge in crypto enthusiasm after the Genius Act was signed into law. The landmark legislation pushed bitcoin to a record high.
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