Wall Street analysts expect Coinbase's (COIN) spot trading volumes to slow further in the third quarter, partly due to a lack of catalysts in the crypto market and an uncertain regulatory environment ahead of the presidential election.
Coinbase is expected to report a roughly 13% drop in third-quarter revenue to $1.26 billion from $1.45 billion in the previous quarter when it reports earnings after the bell on Wednesday, according to FactSet estimates. Meanwhile, earnings per share (EPS) are expected to be $0.46, up from $0.14 in the second quarter.
"Coinbase volumes continued to be weak in the quarter, primarily driven by weak retail trading revenue," Barclays analyst Benjamin Buddish wrote in a note. He gave the stock an equal-weight rating and raised its price target to $175 from $169, while lowering its third-quarter EPS estimate to $1.05 from $1.62. (CoinDesk)