"The disconnect between fundamentals and price action has investors questioning their positions. Coinbase ( NASDAQ: COIN) delivered a strong Q3, with revenue hitting $1.90B (up 25% quarter-over-quarter) and net income of $433M. Yet the stock has shed a third of its value. Three factors explain the bearish sentiment: Bitcoin correlation remains Coinbase's Achilles heel, with the stock moving in near-lockstep with crypto prices Regulatory uncertainty continues to loom over the crypto exchange business model Competition intensifies as traditional finance players expand into digital assets"
"The frustration is palpable across social platforms. One Reddit user on r/options captured the mood, writing: "My portfolio almost reached $250k like 2 months ago and now with market going down, my portfolio is bleeding." The user noted that "COIN has high exposure to BTC so that's really not helpful," despite the company posting strong Q3 earnings. The post received 63 upvotes and 72 comments from fellow traders sharing similar concerns."
Coinbase shares fell more than 30% from a late-October peak of $343.78 to close at $269.73 on December 5 amid a pronounced crypto downturn. Bitcoin tumbled from $99,614 on November 13 to $83,800 by December 1, a 24% decline, and later recovered to $91,238 by December 8. Retail traders publicly expressed deep pessimism, citing Coinbase's tight correlation with BTC. Coinbase reported strong Q3 results — $1.90 billion revenue (up 25% quarter-over-quarter) and $433 million net income — yet the stock lost roughly a third of its value amid regulatory uncertainty, intensifying competition, and a spike in trading volume to 15.5 million shares on November 20.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]