Latest news with #CompassPoint
Yahoo
2 days ago
- Business
- Yahoo
Coinbase Receives Downgrade to ‘Sell' as Retail Interest Cools: Compass Point
Analysts at investment bank Compass Point downgraded Coinbase's stock to 'Sell' from 'Neutral' on Sunday, flagging increased stablecoin competition and growing investor fatigue as potential headwinds for the crypto exchange in the second half of this year. Compass analysts lowered their price target for Coinbase shares to $248 from $330 after the San Francisco-based firm posted a weaker-than-expected second-quarter performance last week,—which was marked by a sequential drop in revenue from crypto transactions. Coinbase notched $764 million in transaction revenue, a 39% drop from the previous quarter. Coinbase has leaned into revenue from subscriptions and services to diversify over the past few years, but that segment pulled in $656 million, a 6% drop quarter-over-quarter as well. Coinbase's stock rose 1% on Monday, as shares changed hands around $319, however, they've fallen 15% from $377 since its earnings on Thursday, according to Yahoo Finance. Despite the recent dip, the company's stock price has rallied 28% year-to-date. Coinbase's revenue miss in the second quarter affirmed that its 'retail trading business is getting disrupted' by decentralized exchanges and exchange-traded funds, but the decline in subscriptions and services revenue was more disappointing, the analysts said. Investors place a higher premium on revenue from that segment because of recurring fees, they added. Compass analysts foresee a continuation of the current bill market, but they argued that there's "limited support for COIN's valuation' if the crypto market begins to turn lower. A panoply of crypto treasury firms have debuted this year, and with the premium that some of them trade at relative to their crypto holdings becoming compressed, Compass analysts posited that 'retail interest in crypto treasury stocks is beginning to wane.' Coinbase recorded a $1.5 billion windfall in the second quarter from its investment in publicly traded stablecoin issuer Circle, which is expected to benefit from legislation passed last month. The crypto exchange meanwhile notched $240 million in stablecoin revenue. Crypto Company Bullish to Raise Up to $629M in IPO As companies like Bank of America, which signaled that they were sidelined until stablecoin legislation is passed, introduce their own products, Compass analysts argued that 'increasing stablecoin competition' will weigh on valuations for Coinbase and Circle. Last month, Compass analysts downgraded Circle's stock to 'Sell,' while lowering the company's price target to $130 for $205 per share. They believe that new competitors could eat away at USDC's market share, even if Circle is able to continue growing the token's market cap.
Yahoo
2 days ago
- Business
- Yahoo
Coinbase Crypto Momentum Stalls, Valuation Stretches: Cut to Sell at Compass Point
Coinbase (COIN) has been downgraded to a sell rating by Compass Point, which also cut its year-end price target from $330 to $248, citing weaker-than-expected earnings and fading interest in crypto equities as key risks. COIN is trading modestly higher on Monday at $316 following last week's earnings-related 18% plunge. 'While we remain constructive on the current crypto cycle, we expect a choppy 3Q alongside weak August/September seasonality and waning retail interest in crypto treasury stocks,' analysts wrote. 'We also expect increasing stablecoin competition to weigh on both COIN and CRCL's valuations in 2H25.' Coinbase missed expectations for second-quarter results, and early third-quarter trends aren't looking much better. Subscription and services revenue, a metric investors see as a reliable income stream, came in 8% below Wall Street estimates in Q2. The midpoint of the company's Q3 forecast is also 5% below consensus. ''Other S&S revenue' was a key contributor to COIN's 2Q/3Q miss,' Compass Point wrote, pointing to a sharp quarter-over-quarter decline in Coinbase One and other tech-related fees — segments many investors had hoped would drive long-term growth. Compass Point's downgrade comes as the crypto market loses momentum despite broader stock markets recovering after last week's dip. Bitcoin (BTC) and ethereum (ETH) have struggled to gain ground, and retail investors appear to be pulling back from 'TreasuryCo' stocks — companies holding large amounts of BTC or other cryptos on their balance sheets. This includes Coinbase and Strategy (MSTR), the latter of which recently slowed its bitcoin buying pace and shifted toward raising funds through preferred equity rather than stock offerings. The analysts flagged that elevated leverage in crypto markets poses a further risk. July's rally was fueled by aggressive trading, but with open interest rebounding after a short dip in liquidations, a deeper sell-off could trigger another round of forced selling. Valuation is also a concern. Despite the weak Q2 results, COIN shares rallied 56% from May to July. Compass Point warns that 'COIN is still trading at 44x annualized 3Q25E Street EBITDA forecast,' which it believes is too high given headwinds in retail trading, competition from ETFs and DeFi, and limited near-term regulatory breakthroughs. Compass Point was also doubtful the CLARITY Act — a bill seen as key to regulatory reform — would pass this year. 'We're more skeptical towards a market structure bill passing this year,' the firm said, projecting movement in early 2026 instead. Coinbase has floated the idea of offering stock trading to users, but analysts are unconvinced it will be a meaningful revenue stream, especially with competitors like Robinhood already far ahead. 'Under a backdrop of weak crypto performance, we see COIN's premium valuation compressing back towards its prior range,' the report al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
3 days ago
- Business
- Yahoo
Compass Point downgrades Coinbase on valuation, weak earnings outlook
-- Compass Point downgraded Coinbase (NASDAQ:COIN) to Sell from Neutral and cut its price target to $248 from $330, citing an extended valuation despite signs of weakening earnings and a challenging crypto environment. The firm flagged waning retail interest, weaker-than-expected Q2 results, and soft 3Q guidance, particularly in high-margin recurring revenue lines like subscriptions and custody services. Subscription and services revenue missed Street expectations by 8% in Q2, with 3Q guidance coming in 5% below consensus.'We also expect increasing stablecoin competition to weigh on both COIN's valuations in 2H25,' said Compass Point. Compass also warned of increased competition from stablecoins and decentralized finance platforms, and noted that Coinbase's core profit engine, retail trading is increasingly under pressure, even amid a broader crypto bull market. Coinbase currently trades at 44x annualized 3Q EBITDA forecasts, a level Compass sees as hard to justify if crypto markets continue to decline. The firm's revised $248 target is based on a 25x multiple of its optimistic 2026 EBITDA estimate.'We see limited support for COIN's valuation if crypto markets sell off further' The note also highlighted risks from elevated crypto leverage, a potentially delayed CLARITY Act, and the company's lag in launching stock trading compared to peers like Robinhood (NASDAQ:HOOD) and Kraken. 'While we remain constructive on the current crypto cycle, we expect a choppy 3Q alongside weak August/September seasonality and waning retail interest in crypto treasury sto Related articles Compass Point downgrades Coinbase on valuation, weak earnings outlook These Under-the-Radar Stocks Offer Better Risk-Reward Ratio Than Nvidia If Powell goes, does Fed trust go with him? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
3 days ago
- Business
- Globe and Mail
Analysts Offer Insights on Financial Companies: Robinhood (HOOD) and Coinbase Global (COIN)
Companies in the Financial sector have received a lot of coverage today as analysts weigh in on Robinhood (HOOD – Research Report) and Coinbase Global (COIN – Research Report). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Robinhood (HOOD) In a report issued on August 1, Craig Siegenthaler from Bank of America Securities maintained a Buy rating on Robinhood, with a price target of $119.00. The company's shares closed last Friday at $99.90. According to Siegenthaler is a top 100 analyst with an average return of 18.8% and a 64.0% success rate. Siegenthaler covers the Financial sector, focusing on stocks such as Intercontinental Exchange, Apollo Global Management, and Victory Capital Holdings. ;'> Robinhood has an analyst consensus of Moderate Buy, with a price target consensus of $108.06, which is a 10.5% upside from current levels. In a report issued on July 17, TR | OpenAI – 4o also upgraded the stock to Buy with a $118.00 price target. Coinbase Global (COIN) Coinbase Global received a Sell rating and a $248.00 price target from Compass Point analyst Ed Engel today. The company's shares closed last Friday at $314.69. Engel has an average return of 0.8% when recommending Coinbase Global. ;'> According to Engel is ranked #8697 out of 9897 analysts. Currently, the analyst consensus on Coinbase Global is a Moderate Buy with an average price target of $387.97, implying a 15.8% upside from current levels. In a report issued on August 1, H.C. Wainwright also reiterated a Sell rating on the stock with a $300.00 price target.
Yahoo
3 days ago
- Business
- Yahoo
Analyst downgrades top S&P 500 stock after disappointing earnings
Analyst downgrades top S&P 500 stock after disappointing earnings originally appeared on TheStreet. Compass Point has lowered Coinbase's (Nasdaq: COIN) price target from $330 to $248 and downgraded the rating from "Neutral" to "Sell" after the crypto exchange reported disappointing financial results for the second quarter of 2025. The investment firm indicated receding retail interest, poor Q2 records, weak prospects for recurring revenue lines like subscriptions and custody services the next quarter, and more competition from stablecoin and decentralized finance (DeFi) platforms as the reasons it downgraded the COIN stock's rating. Compass Point also warned of Coinbase's retail trading under pressure despite a bullish crypto market. Notably, retail trading is Coinbase's main profit are two other factors that the firm highlighted as possible risks for Coinbase. One is a potential delay in the CLARITY Act, which deals with classifying the financial status of crypto assets. Another is Coinbase trailing Robinhood (Nasdaq: HOOD) and Kraken in launching stock trading. 'We see limited support for COIN's valuation if crypto markets sell off further,' said Compass Point. Founded in 2012, Coinbase is the largest crypto exchange in the U.S. The company, which went public in April 2021, joined the S&P 500 list in May 2025 — the only crypto stock to be included in the hotly contested list so far. During Q2 2025, the exchange generated $1.5 billion in total revenue, $1.4 billion in net income, and earnings per share (EPS) of $5.14 in Q2. The exchange held 11,776 Bitcoin worth $1.3 billion by the end of the quarter. The COIN stock is trading at $319.55 at the time of writing, up 1.54% a day. Analyst downgrades top S&P 500 stock after disappointing earnings first appeared on TheStreet on Aug 4, 2025 This story was originally reported by TheStreet on Aug 4, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
