Benchmark Lowers Coinbase Price Target but Maintains Bullish Outlook on Diversified Growth

Investment firm Benchmark has reduced its price target for Coinbase shares by 37%, cutting the forecast to $267 from $421, while reaffirming a buy rating. The revision reflects softer crypto market conditions and weaker near-term earnings expectations.

Analyst Mark Palmer lowered his full-year 2026 earnings-per-share estimate to $5.34, a 21% reduction, with first-half projections falling below broader market consensus. The adjustment follows fourth-quarter results that missed revenue and profit estimates amid an 11% decline in overall crypto market capitalization.

Coinbase Earnings Show Pressure From Market Volatility

Coinbase reported $1.71 billion in fourth-quarter net revenue, down 5% sequentially. Transaction revenue declined 6% to $983 million. The company posted a GAAP net loss of $667 million, largely driven by unrealized crypto portfolio losses and strategic investment write-downs.

Diversified Revenue Mix Strengthens Long-Term Outlook

Despite near-term headwinds, Benchmark highlighted Coinbase’s evolving business model. Institutional trading revenue climbed 37%, supported by derivatives activity, while stablecoin revenue rose to $364 million with record balances of USD Coin.

Subscription and services revenue accounted for 43% of quarterly net revenue, underscoring the exchange’s shift beyond spot trading toward recurring income streams and broader financial services integration.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.