Updated Aug 7 at 5:06pm ET.
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Block, a major payments rival, raised what it expects to earn for the full year. While its bitcoin-related revenue fell, its other financial and commerce tools grew enough to make up for it.
This is a useful read-through for Coinbase. It shows that even when crypto trading is slow, companies that have built other financial services can still find ways to grow. It supports the idea that diversifying away from just trading fees is the right move for these platforms.
Source: WSJ
Cantor Fitzgerald lowered its price target for the stock to $184, down from $250. This is a large cut of about 26 percent, though the new target is still higher than where the stock trades today.
The change follows a quarterly report that showed slower trading activity. While the firm is less optimistic about the stock's price in the near term, its new target suggests it still sees some room for the stock to rise from its current levels.
Source: Cantor Fitzgerald
Director Frederick Wilson sold about 1.5 million dollars worth of stock. This was the largest of several sales he made on the same day. While a million-dollar sale sounds large, it is often part of a pre-set plan for executives to diversify their personal wealth. Because these sales are usually scheduled months in advance, they rarely tell us anything about what an insider thinks the stock will do next.
Goldman Sachs lowered its price target for the stock from $198 to $173. The firm kept its Buy rating, which means it still thinks the stock is a good value at today's price.
The lower target reflects the reality of a quieter crypto market, which has slowed down the fees the company earns from trading. However, keeping the Buy rating shows the firm still believes in the company's long-term plan to become a broader financial infrastructure provider.
Source: Goldman Sachs
The company reported a loss of $1.36 per share, which was much wider than the $0.44 loss analysts expected. Revenue came in at about 1.22 billion dollars, down 19 percent from the same time last year and slightly below what Wall Street was looking for.
This was the third quarter in a row where the company lost money. The main cause is a quiet crypto market, which means fewer people are trading and the company is collecting fewer fees. While the business is trying to grow more stable income from things like its Base network and institutional services, these results show it is still very dependent on whether retail traders are active.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Analysts issued a flurry of price target adjustments following the company's recent quarterly earnings report. Most analysts, 21 of 38, rate the stock a buy, and the average target of $205 suggests a 33% upside from today's price.
The company has missed analyst estimates for three straight quarters as a cooling market for digital assets makes its results harder to predict. Management is currently struggling to outrun the slowdown in trading.
| Expectation | |
|---|---|
| EPS | $-0.14 |
| Revenue | $1.18B |
