Coinbase and Robinhood Stocks Plummet After Disappointing Q3 Earnings

Both companies reported weaker-than-expected financial results, leading to significant drops in their stock prices amid broader market declines.

Coinbase shares fell 12% after missing revenue and profit expectations for Q3, with trading volume down 18% from the previous quarter.
Robinhood stock dropped 15% following a shortfall in earnings, attributed to costs from customer promotions and a decline in net deposits.
Coinbase reported Q3 revenue of $1.21 billion, below the $1.26 billion expected, with a 27% drop in transaction revenue from the previous quarter.
Despite missing earnings estimates, Coinbase's subscription and services revenue showed resilience, driven by stablecoins and its Ethereum L2 network, Base.
Robinhood's cryptocurrency trading volumes surged 112% year-over-year, but the company still fell short of revenue expectations, impacting its stock performance.