Coinbase's Q2 Earnings Fall Short of Expectations

Shares of Coinbase Global Inc. experienced a significant drop, sliding more than 14% on Friday. This downturn came after the crypto trading platform reported its second-quarter revenue, which failed to meet analysts' expectations.

Financial Performance Overview

The company announced a revenue of $1.5 billion, falling short of the anticipated $1.6 billion. Additionally, retail trading volume was reported at $43 billion, not only below the estimated $48.05 billion but also marking a 32% decrease compared to the previous year.

Profitability Takes a Hit

Coinbase's adjusted profit for the quarter ending June 30 was $33.2 million, or $0.12 per share, a stark contrast to the $294.4 million, or $1.10 per share, recorded in the same period last year.

Market Reaction

By midday, the stock had plummeted 14.78% to $321.92, reflecting the market's disappointment with the earnings miss.