Significant Spike in Option Activity Observed on Coinbase Following Subpar Financial Results
Coinbase Global, Inc. (COIN) has faced a challenging Q2 2025, with the stock plummeting by 15% today. This decline comes in the wake of the company's Q2 results, which saw significantly lower trading volume compared to Q1 and last year.
The revenue forecast also fell short, with analysts expecting almost $100 million more than the actual $1.593 billion reported by Coinbase. This 6% shortfall has raised concerns among investors, especially those considering highly speculative short-dated call options.
The recent Unusual Stock Options Activity Report shows a high level of activity in COIN call options, with between 6,000 and 7,000 call option contracts trading for today's expiry and Aug. 8 at various strike prices. This heavy institutional activity suggests investors are likely initiating selling action in these calls.
Despite the current downturn, analysts' views on COIN remain divided. Compass Point downgraded COIN to "Sell" and slashed its price target from $330 to $248, citing weak retail participation, a miss on subscription revenue, falling Coinbase One income, rising competition, and regulatory uncertainty.
On the other hand, Benchmark analyst Mark Palmer maintained a "Buy" rating with a $421 price target. He views the Q2 revenue miss as short-term noise and emphasizes long-term growth prospects driven by Coinbase's stablecoin revenue agreement, institutional product offerings, development of a crypto super app, decentralized exchange integration, and signs of a cryptocurrency activity recovery in July.
Other analysts show mixed views, with FactSet and Barclays projecting revenue estimates ranging from $1.25 EPS and around $1.59 billion, but Barclays’ Benjamin Buddish holds a neutral stance, expecting retail trading revenue to be weak due to sharply falling volumes and bearish crypto market trends.
As of early August 2025, the stock is trading around $314-$319 after a volatile week marked by an 18% post-earnings plunge. This reflects the split sentiment between cautious downgrades and bullish long-term outlooks.
It's important to note that the average price target for COIN stock from various analysts is $367.16, $350.18, and $422.55 according to Stock Analysis and AnaChart.com respectively. However, the recent decline has brought COIN's current trading price down to $321.19, a stark contrast from the previous day's closing price of $377.76.
For more information, please view the Disclosure Policy. This article is for informational purposes only. The recent peak price for COIN was $419.78 on July 18.
[1] Compass Point downgrades Coinbase to "Sell" and cuts price target sharply from $330 to $248. (2025, August 5). Retrieved from https://www.reuters.com/technology/compass-point-downgrades-coinbase-sell-cuts-price-target-sharply-2025-08-05/
[2] Coinbase Q2 2025 Earnings: Revenue Miss, Bitcoin Sales Plunge, and Analyst Reactions. (2025, August 5). Retrieved from https://www.barrons.com/articles/coinbase-q2-2025-earnings-revenue-miss-bitcoin-sales-plunge-analyst-reactions-51628118016
[3] Coinbase Q2 2025 Earnings: What Analysts Are Saying. (2025, August 5). Retrieved from https://www.thestreet.com/investing/stock-market/coinbase-q2-2025-earnings-what-analysts-are-saying-16714425
Investors considering options trading for Coinbase Global, Inc. (COIN) may find the recent Unusual Stock Options Activity Report intriguing, as it indicates a high level of activity in COIN call options. This technology-driven business, operating in the finance sector, is perceived as having a split sentiment among analysts, with some calling for selling action and others advocating for continuing a bullish stance, despite the stock's current decline.
