Analyst sends harsh waring on Coinbase stock originally appeared on TheStreet .
Compass Point has lowered Coinbase's (Nasdaq: COIN) price target from $330 to $248 and downgraded the rating from "Neutral" to "Sell" after the crypto exchange reported disappointing financial results for the second quarter of 2025.
The investment firm indicated receding retail interest, poor Q2 records, weak prospects for recurring revenue lines like subscriptions and custody services the next quarter, and more competition from stablecoin and decentralized finance (DeFi) platforms as the reasons it downgraded the COIN stock's rating.
Compass Point also warned of Coinbase's retail trading under pressure despite a bullish crypto market. Notably, retail trading is Coinbase's main profit driver.
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There are two other factors that the firm highlighted as possible risks for Coinbase. One is a potential delay in the CLARITY Act, which deals with classifying the financial status of crypto assets. Another is Coinbase trailing Robinhood (Nasdaq: HOOD) and Kraken in launching stock trading.
"We see limited support for COIN's valuation if crypto markets sell off further," said Compass Point.
Founded in 2012, Coinbase is the largest crypto exchange in the U.S. The company, which went public in April 2021, joined the S&P 500 list in May 2025 — the only crypto stock to be included in the hotly contested list so far.
During Q2 2025, the exchange generated $1.5 billion in total revenue, $1.4 billion in net income, and earnings per share (EPS) of $5.14 in Q2. The exchange held 11,776 Bitcoin worth $1.3 billion by the end of the quarter.
The COIN stock is trading at $319.55 at the time of writing, up 1.54% a day.
Analyst sends harsh waring on Coinbase stock first appeared on TheStreet on Aug 4, 2025
This story was originally reported by TheStreet on Aug 4, 2025, where it first appeared.
