Wall Street views Coinbase through an election lens and soft pedals weak earnings

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Coinbase's earnings were even weaker than expected but the stock is still a buy, many analysts say.

Coinbase Global's latest earnings were even weaker than expected, but with an eye toward next week's election and its effect on cryptocurrency markets, many analysts on Wall Street say the exchange is still a buy. The operator of the largest U.S. marketplace for buying and selling cryptocurrencies reported third-quarter financial results late Wednesday, with subdued crypto prices in what is historically the weakest quarter for crypto assets weighing down trading revenue.

mountain 2024-06-30 Coinbase shares in the second half of 2024. Furthermore, federal legislation would unlock state-level expansion opportunities for Coinbase and add additional pricing power to its retail trading business, Citigroup's Peter Christiansen said in a Thursday morning note.

is positioned to be a dominant player in crypto over the long term, but there remains a significant lack of regulatory clarity surrounding many aspects of 's U.S. operations," Patrick Moley, an analyst at the firm, said in a note. Bank of America also remains neutral, saying that while "the current macro and regulatory environment is becoming more positive for cryptocurrencies, providing a tailwind to market cap appreciation and trading volumes," there remains a potential overhang threatening the stock tied to SEC lawsuits against crypto firms, as well as Coinbase's dependence on transaction revenue.

 

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