Baird Cuts Coinbase Revenue Forecast Amid Cryptocurrency Price Drop

Baird analysts reiterate their Neutral rating on Coinbase Global Inc. (NASDAQ:COIN) shares, citing concerns that second-quarter revenue will fall short of Wall Street estimates.

The firm expects Coinbase's second-quarter revenue to decline by approximately 8% based on cryptocurrency trading volumes and prices, with a 22% sequential drop in trading volumes driving down revenue by 12%. This is significantly higher than the 4% sequential decline expected by analysts.

About 65% of Coinbase's revenue is highly correlated with trading volumes, which Baird believes will be impacted by lower cryptocurrency prices. The firm's 2027 earnings per share estimate stands at $4.02, below the Street consensus of $5.09.