When stock or crypto prices go down, volumes generally dry up, especially those coming from retail traders. With the recent crypto downturn wreaking havoc with people’s portfolios, Coinbase (COIN) is feeling the heat. The company’s stock was already in a downtrend, but recent downward EPS revisions from Argus Research have only added fuel to the fire.
Argus has argued that COIN stock is overvalued compared to its peers and does not merit a “Buy” rating at current high valuations. The 2026 EPS estimate has been revised down to $6.55 from $9.56, a 31% reduction from prior estimates. This should clarify one thing for investors: it is extremely challenging to have a reliable earnings visibility into the company’s profits, mainly because it relies on a very volatile asset class for its earnings. This is unlikely to change anytime soon.
