"Shares of Coinbase ( NASDAQ:COIN) closed at $275.09 on December 10 as retail investor sentiment on Reddit remains deeply negative. The stock carries a sentiment score of just 17.2 out of 100, placing it in the "very bearish" category. Bitcoin's 17.8% decline from its November peak of $107,482 to around $90,000 has dragged Coinbase down 36% from its late October high of $343.78."
"Despite Coinbase beating Q3 earnings estimates by 27% (delivering $1.50 per share versus $1.18 expected) and posting a 43.7% profit margin, the stock has failed to hold gains. Three factors drive the bearish sentiment: Bitcoin correlation overwhelms fundamentals, with COIN's beta of 3.7 amplifying crypto market swings Earnings volatility makes timing impossible, alternating between 240% beats and 87% misses in recent quarters Options holders face magnified losses as extreme volatility crushes time value"
Coinbase closed at $275.09 with retail investor sentiment on Reddit deeply negative, reflected by a 17.2 out of 100 "very bearish" score. Bitcoin dropped 17.8% from its November peak, pulling Coinbase 36% below its late October high of $343.78. A retail options trader reported LEAP calls down more than 50% from peak values. Coinbase beat Q3 earnings by 27% with $1.50 per share and a 43.7% profit margin, but the stock failed to hold gains. High Bitcoin correlation (beta 3.7), volatile quarterly earnings, and amplified losses for options holders drive the bearish outlook. Robinhood's diversified revenue mix delivered strong gains and provided insulation from Bitcoin weakness.
Read at 24/7 Wall St.
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