Coinbase Stock Rebounds in Pre-Market as Wall Street Trim Price Targets Following Earnings

Coinbase stock price (NASDAQ:COIN) has added 5.7% in pre-market trading, clawing back a portion of the previous session’s 7.9% decline as analysts across Wall Street reassessed their positions following the cryptocurrency exchange’s fourth-quarter earnings report.

The pre-market bounce comes despite a wave of price target cuts from major investment banks, with analysts trimming their forecasts by as much as 44% in some cases.

The sharp downgrades follow Coinbase’s first quarterly loss since the third quarter of 2023, with the company reporting a net loss of $666.7 million for the fourth quarter of 2025.

Transaction revenue fell 37% year-over-year to $982.7 million, weighed down by a cryptocurrency market that saw Bitcoin plunge nearly 30% from its October peak to under $88,500 by year-end. Things have since got significantly worse for BTC, with markets anticipating a hit as a result.

Analyst Commentary

JPMorgan maintained its Overweight rating on the stock but reduced its price target to $252 from $290, citing lower token volume and market capitalization estimates, as well as a reduced valuation for Circle. The firm characterized the crypto market conditions as poor, directly impacting Coinbase’s quarterly performance.

Piper Sandler took a more cautious stance, slashing its target to $150 from $270 while keeping a Neutral rating. The firm significantly lowered its 2026 and 2027 earnings per share estimates from $2.54 and $3.07 to $1.42 and $2.59 respectively, reflecting weaker-than-expected first-quarter guidance.

Canaccord cut its target to $300 from $400 but retained a Buy rating, while Benchmark reduced its forecast to $267 from $421, also maintaining a Buy rating. Benchmark noted what it termed a familiar paradox, observing that while Coinbase stock trades with leveraged exposure to cryptocurrency price movements, the underlying business is evolving into a more diversified and durable operation. The firm pointed to doubled trading volume and market share in 2025, scaling of the derivatives platform, and ongoing stablecoin adoption as evidence of a compelling long-term secular growth story.

Barclays adopted a more bearish view, lowering its price target to $148 from $258 with an Equal Weight rating, noting that both revenue and adjusted EBITDA missed consensus estimates and that first-quarter guidance came in largely below expectations. Citizens JMP reduced its target to $400 from $440 while maintaining an Outperform rating, describing the quarter as difficult but identifying bright spots amid broader market softness. 

Clear Street analyst Owen Lau lowered the price target to $277 from $344, maintaining a Buy rating and highlighting potential near-term catalysts including progress on market structure legislation and a possible shift in interest rate expectations. BTIG similarly reduced its target to $280 from $340 while keeping a Buy rating on the shares.

While the company’s efforts to diversify revenue streams and expand into derivatives and stablecoin services have been acknowledged, near-term headwinds from reduced trading volumes and lower cryptocurrency prices continue to weigh on sentiment.

The pre-market recovery suggests markets may view the previous session’s sell-off as overdone, though the substantial price target reductions indicate analysts expect continued pressure on earnings in the quarters ahead.