Coinbase bulls point to crypto legislation and stablecoins after earnings miss
Key takeaways
- Several analysts lowered forecasts after the company missed expectations on revenue and adjusted EBITDA as trading activity slowed across the crypto market.
- JPMorgan said the quarter reflected “a challenging environment” but added that Coinbase had “positioned the company well to operate in an increasingly digital world.”
- The bank said pending U.S. crypto legislation “does set up for a better outlook into 2H26 and into 2027” and maintained an overweight rating on the stock.
Teilen Diesen Artikel teilen Link kopieren X icon X (Twitter)Linked In Facebook E-Mail Coinbase bulls point to crypto legislation and stablecoins after earnings miss Analysts say Coinbase’s long-term growth may depend more on stablecoins and U.S. crypto legislation than a rebound in trading activity.Von Helene Braun|Bearbeitet von Nikhilesh De 8. Mai 2026, 1:21 p.m. 3 min readÜbersetzt von KIMake preferred on What to know: Coinbase’s weaker-than-expected first-quarter results and slowing trading activity have deepened a Wall Street split over whether its business is still overly tied to crypto’s boom-and-bust cycles.Several firms, including JPMorgan, Clear Street and Oppenheimer, remain positive on the stock, citing growth in stablecoins, derivatives, prediction markets and Coinbase’s broader “Everything Exchange” strategy, as well as potential tailwinds from pending U.S. crypto legislation.Skeptics such as Barclays and Compass Point argued that profitability is under pressure and user activity is weakening, contending that Coinbase remains heavily dependent on crypto cycles, with shares down 3.6 percent in pre-market trading.Coinbase’s (COIN) weak first-quarter earnings report sparked another divide on Wall Street over whether the crypto platform is building a more durable business or remains tied to crypto’s boom-and-bust cycles.
Several analysts lowered forecasts after the company missed expectations on revenue and adjusted EBITDA as trading activity slowed across the crypto market. Still, a number of firms argued Coinbase’s expanding stablecoin and derivatives businesses — along with the possible passage of crypto legislation in Washington — could improve the company’s outlook later this year.
JPMorgan said the quarter reflected “a challenging environment” but added that Coinbase had “positioned the company well to operate in an increasingly digital world.”