Coinbase's second-quarter earnings were 'solid,' Wall Street analysts said, but could continue to slow in the third quarter.If that trend continues, revenue could be even lower in the third quarter, one analysts said.
“It was a solid quarter in what was a far less robust market than we witnessed in 1Q24,” J.P. Morgan analysts wrote in a note on Friday. The bank maintained its neutral rating on the stock. “Management indicated there are other revenue streams that are beginning to have an impact on the company's blended average take rate which are not included in spot trading volumes but are in revenues,” analysts at British bank Barclays, which maintains an “underweight” rating, noted.
However, Oppenheimer’s Owen Lau notes that if the current trend continues, revenue in the third quarter will likely be lower than the previous quarter combined with likely lower interest rates by the Federal Reserve in October. Coinbase also predicted that operating expenses will remain high in the next quarter due to high spending in sales and marketing.