Coinbase's second-quarter results missed expectations, and Wall Street is divided on its growth strategy.

Odaily Planet Daily reports that Coinbase's stock price initially fell to a near two-and-a-half-year low in early trading on Friday after its second-quarter results missed market expectations, before recovering to around $150. The stock is still down approximately 57% over the past year. Wall Street generally agrees that Coinbase's performance this quarter was poor, but opinions differ on the reasons: some analysts believe it was mainly due to the weak crypto market environment, while others are beginning to question the company's growth strategy beyond trading. JPMorgan stated that Coinbase's results reflect a "difficult crypto environment," with new products contributing limited to the profit statement. The bank lowered its December 2026 price target for Coinbase from $196 to $148, but maintained an "overweight" rating. JPMorgan believes that multiple business lines are under pressure, with weak trading volumes dragging down trading revenue, and subscription and service revenue also under pressure. Bernstein, however, believes that Coinbase's long-term strategy remains attractive, but investors want to see more convincing execution, especially in new business areas such as prediction markets and tokenized stocks. Mizuho warned that Robinhood is becoming a mainstream alternative for retail crypto trading. Overall, Coinbase is still seen as a key representative of US crypto compliance infrastructure, but its valuation recovery increasingly depends on its ability to prove it's not just a crypto exchange reliant on trading cycles.