Coinbase Plummets 3% Post Market as Q1 Earnings Miss Estimates, But Analysts Spot Upside Potentials!

TradingKey – Coinbase (COIN) reported weaker-than-expected Q1 earnings, sending its shares down nearly 3% in after-hours trading. However, analysts maintain a "Buy" rating, citing a promising outlook.  

On Thursday, Coinbase(COIN), the world’s second-largest cryptocurrency exchange, posted disappointing Q1 results, causing its stock to drop 2.67% in extended trading.  

Coinbase Stock Price Chart, Source: Google.

Key earnings figures: 

- Q1 2025 Revenue: $2.03B (vs. $2.2B expected)  

- Earnings Per Share (EPS): $0.24 (vs. $1.93 expected)  

Despite the miss, analysts anticipate a strong rebound in Q2, driven by:  

1. Easing global trade tariffs, which are boosting crypto prices and increasing trader activity.  

2. Coinbase’s strategic acquisition of Deribit, a major crypto derivatives exchange, expected to significantly expand revenue streams.  

While Coinbase dominates spot trading, its lack of derivatives exposure has been a weakness. The Deribit deal changes that—the platform is the world’s largest Bitcoin (BTC) and Ethereum (ETH) options marketplace, with 2024 trading volume exceeding $1 trillion.  

Benchmark analyst Mark Palmer remains bullish, reiterating a "Buy" rating with a $252 price target. He stated: "Deribit’s global dominance in crypto options is evident in its consistently high open interest and trading volume, often surpassing competitors like CME Group and Binance."