Coinbase Stock Plummets in Largest Single-Day Drop in Two Years After Earnings Miss
The shares of Coinbase Global Inc. (COIN) posted their worst single-day decline in nearly two years, falling 15.34% to close the session at $179.25 on Oct. 31. The selloff came as third-quarter earnings at the largest cryptocurrency exchange in the United States fell 11% below Wall Street's expectations.
Despite the sudden downturn, market sentiment regarding the company’s future performance is surprisingly very optimistic. After-hours trading demonstrates some signs of catching up, with a slight gain of 1.43%, whereas popular traders have shown their bullish forecast for 2025.
While the revenue from transactions decreased 27% quarter-over-quarter to $573 million, the figure represents an impressive year-over-year growth of more than 98% compared to Q3 2023.
This is all important to note within the broader market context, in which Oct. 31 saw close to $950 billion erased in terms of overall market capitalization. Interestingly enough, MicroStrategy, led by Michael Saylor, has surpassed Coinbase in market capitalization with its $49.5 billion versus $44.54 billion for Coinbase.
The U.S. election on Nov. 5 may add further volatility to the markets. Meanwhile, Bitcoin is currently trading at around $69,546, down 3.8% amidst a broad market selloff.