Coinbase (COIN) shares slipped in pre-market trading Thursday after the company’s first-quarter earnings report missed Wall Street expectations on revenue and adjusted EBITDA.
JPMorgan acknowledged a challenging environment but maintained an overweight rating, saying pending U.S. crypto legislation could improve the outlook into the second half of 2026 and 2027. The bill in focus is the CLARITY Act, which aims to establish clear rules for digital asset regulation between the SEC and CFTC.
Clear Street also cited regulatory catalysts while lowering its price target from $140 to $107. The firm highlighted growth in prediction markets, which generated over $100 million in annualized revenue, and retail derivatives surpassing $200 million.
Oppenheimer pointed to Coinbase’s “Everything Exchange strategy,” including stablecoins, derivatives, and tokenized assets, as a long-term growth driver.
William Blair argued the first quarter may be the cycle’s low point, noting growth in USDC activity and the Base blockchain.
Not all analysts were convinced. Barclays maintained an Underweight rating, warning profitability remains under pressure. Compass Point kept a Sell rating, arguing Coinbase is still tied to crypto cycles.
Shares of Coinbase were down 3.6% in pre-market trading.