Coinbase Global Inc. shares surged this week even after the crypto exchange posted a steep quarterly loss. Wall Street analysts continue to back the stock, signaling long term confidence in the company’s strategy despite ongoing crypto market weakness.
The rally followed Coinbase’s fourth quarter 2025 earnings report. The company revealed a net loss of about $667 million. This marks its first quarterly loss since mid 2023. In the same period last year, Coinbase delivered a profit, making the swing more noticeable.
Revenue dropped more than 21% year over year to roughly $1.78 billion. The figure missed analyst expectations. Transaction revenue fell sharply as crypto trading volumes slowed. However, subscription and services revenue showed modest growth, offering a bright spot.
Why Coinbase Shares Are Rising
Investors appeared prepared for worse results. As a result, many adopted a buy the dip strategy. The stock climbed in after hours trading and extended gains into the next session.
Several major firms, including JPMorgan, Cantor Fitzgerald, and Citi, lowered their price targets. However, they maintained Buy or Overweight ratings. Analysts believe Coinbase still holds strong long term potential.
They point to:
- Growth in subscription and services revenue
- Expanding institutional client base
- Custody services and staking offerings
- Potential regulatory clarity around stablecoins in the United States
These factors could help stabilize earnings during periods of low trading activity.
Focus Shifts Beyond Trading Revenue
Coinbase continues to diversify beyond simple crypto trading. The company invests in products that generate recurring revenue. Therefore, analysts see a more balanced business model forming.
Furthermore, possible U.S. regulatory clarity could unlock new growth opportunities. Clear rules often attract more institutional investors. That trend could support both trading volumes and custody demand.
Still, the broader cryptocurrency market remains volatile. Bitcoin and Ethereum price swings directly impact Coinbase’s revenue. In the near term, trading activity will likely drive sentiment.
For now, Wall Street seems willing to look beyond short term losses. Investors appear focused on Coinbase’s long term growth story and its role in the evolving digital asset economy.
