COIN Stock Drops 8% After Analyst Downgrades and Weak Q4 Earnings

Coinbase Global (NASDAQ: COIN) shares tumbled 8% to $141.09 on Thursday after multiple Wall Street analyst downgrades and weaker-than-expected Q4 2025 earnings rattled investor confidence. The sharp decline adds to a difficult year for COIN stock, which is now down more than 40% year-to-date and nearly 66% over the past 12 months amid ongoing crypto market volatility.

Monness Crespi Hardt downgraded Coinbase stock from “buy” to “sell,” while also lowering its price target. Other major firms, including JPMorgan, reduced their forecasts, citing prolonged weakness in the cryptocurrency market that could pressure Coinbase’s revenue, EBITDA, and earnings per share (EPS) through 2026 and 2027. Analysts pointed to declining trading volumes and uncertain macro conditions as key risks for the crypto exchange.

Investor sentiment was further impacted by Coinbase CEO Brian Armstrong’s continued share sales. Armstrong sold $101 million worth of COIN stock in January and nearly $550 million in shares over the past year, representing about 5% of his total holdings. Additionally, delays surrounding the CLARITY Act, following Coinbase’s withdrawal of support, added to market uncertainty.

Coinbase’s Q4 2025 earnings report reflected the challenging environment. The company posted a net loss of $666.7 million, or $2.49 per share, compared to analyst expectations of positive EPS. Revenue totaled $1.78 billion, missing the projected $1.83 billion. Transaction revenue dropped to $982.7 million from $1.56 billion a year earlier, driven by lower crypto trading activity. However, subscription and services revenue rose 13.5% year-over-year to $727.4 million, supported by stablecoin growth.

Despite near-term headwinds, Coinbase management highlighted its “Everything Exchange” strategy, expansion of stablecoin and payment services, and deeper DeFi integration via the Base network as long-term growth drivers. COIN stock edged up 0.87% in after-hours trading to $142.32. Analysts now set 12-month price targets between $300 and $350, while technical indicators show the stock trading in oversold territory.