Coinbase Global Inc. (COIN) saw its largest single-day drop in over two years on October 31, as the stock closed at $179.25, down 15.34%. This sharp decline followed an earnings miss in Coinbase’s Q3 2024 report and coincided with a broader market slump that erased over $950 billion in stock value. Despite the downturn, traders remain optimistic about a strong recovery for Coinbase by 2025.
Missed Earnings and Market Woes Drive COIN Decline
Coinbase’s Q3 earnings missed Wall Street expectations by 11%, marking a tough day for COIN amid a challenging economic climate. Transaction revenue fell by 27% from the previous quarter, totaling $573 million, though it remains nearly double the figure from Q3 2023. On social media, traders have downplayed the earnings miss, viewing it as a temporary setback. One prominent crypto trader, Pickle, predicted that Coinbase’s stock could rise as high as $600 by 2025, attributing the recent slump to typically slow summer market conditions and low retail interest.
Despite recent volatility, some traders, including stock market analyst Geert Leysen, believe Coinbase’s performance could improve with Bitcoin’s rising value, as Bitcoin currently trades near $69,310, just 6.3% below its all-time high.
COIN Remains Below IPO Price Despite Bullish Forecasts
As Coinbase’s stock remains below its April 2021 IPO price of $250, the market’s outlook remains mixed. Pseudonymous trader Cable expressed surprise at COIN’s underperformance relative to its IPO price, especially with upcoming events like the U.S. presidential election, which could impact the market further.
MicroStrategy’s Market Cap Surpasses Coinbase’s
Amid the turmoil, MicroStrategy (MSTR) has surpassed Coinbase in market capitalization, with MSTR valued at $49.5 billion compared to Coinbase’s $44.54 billion. Bitcoin analyst Tuur Demeester recently highlighted the contrasting approaches of the two companies, likening MicroStrategy’s Bitcoin-focused strategy to a “hedgehog” approach versus Coinbase’s “fox” approach with multiple strategies.
While the stock market volatility has impacted both firms, traders remain confident that COIN’s performance will improve as market conditions stabilize and cryptocurrency adoption continues to grow.
