Analysts lower Q2 forecasts for COIN as spot trading volumes decline, offset partly by subscription and services revenue.
Wall Street firms have slashed second-quarter earnings estimates for Coinbase (COIN) after a sharp drop in crypto spot trading volumes during April and May. Barclays, Benchmark, Clear Street, and Compass Point revised forecasts downward, citing weaker transaction activity as investors remain cautious amid regulatory uncertainty.
Coinbase’s reliance on trading fees has been tested by the slowdown, though steady income from subscriptions, stablecoin interest, and staking rewards may soften the blow. Analysts expect long-term growth initiatives like derivatives and prediction markets to play a larger role, but regulatory developments remain a critical variable for the stock’s outlook.
The company reports earnings Thursday, with investors focused less on Q2 numbers and more on management’s guidance for the second half of the year and regulatory progress. Consensus suggests another challenging quarter for crypto trading, though diversification efforts could mitigate risks.