Coinbase Stock: Sharp Decline Despite Strong Earnings

Coinbase shares have experienced significant losses, dropping 4.3 percent to $180.75 in recent NASDAQ trading. The stock slid as low as $178.80 during the session after opening at $185.00. Currently, the share price sits nearly 94 percent below its 52-week high of $349.74, reflecting substantial downward pressure despite impressive quarterly results. In late 2024, Coinbase reported earnings per share of $5.13, a remarkable increase from the previous year's $1.14. Revenue also surged by over 138 percent to $2.27 billion. Analysts project earnings per share of $7.67 for the full year 2025, with first-quarter results expected on May 7th, potentially providing new momentum for the stock price.

Ethereum Forecast Weighs on Crypto Sector

A contributing factor to Coinbase's stock pressure may be Standard Chartered's dramatic reduction in its Ethereum price forecast for 2025, slashing projections from $10,000 to just $4,000. Ironically, Coinbase's own Layer-2 solution "Base" is cited as one reason for this adjustment, as such technologies could diminish the importance of Ethereum's main chain. Following February's steep sell-off, Coinbase shares remain technically vulnerable, trading below key moving averages. Investors now question whether the correction phase has concluded or if further declines loom, with the current 52-week low of $146.14 sitting approximately 19 percent below present levels.

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Source StockWorld