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Coinbase Drops as Bitcoin Retreats and Argus Cuts Rating on Valuation

A valuation downgrade following a Bitcoin pullback pressured Coinbase shares.

Overview

  • Coinbase fell about 2.5% to $249.56 on Tuesday as Bitcoin slipped, weighing on crypto‑linked stocks.
  • Argus downgraded Coinbase to Hold from Buy, citing stretched valuation near 39 times its updated 2026 earnings forecast versus peers at roughly 24 to 27 times.
  • Argus trimmed its earnings estimates and now models revenue of about $7.3 billion in 2025 and $8.4 billion in 2026 due to recent crypto price weakness.
  • Investors continue to treat Coinbase as a high‑beta proxy for Bitcoin, which makes stock moves closely track crypto price swings.
  • Goldman Sachs on Nov. 21 cut its Coinbase price target to $314 and kept a Neutral rating, noting crypto and broker stocks have fallen about 15% since mid‑October and could face near‑term pressure until markets stabilize.