Coinbase Down 12% From November Peak as Crypto Exchange Faces Growing Skepticism Over Revenue Sustainability
Shares of Coinbase (NASDAQ:COIN) have fallen 11% in the last month, coinciding with a sharp turn in retail investor sentiment across Reddit and X. Once a darling of crypto bulls during Bitcoin’s run to all-time highs, Coinbase now faces mounting skepticism as traders question whether the party is over. Bitcoin’s slide below $93,872 (after hitting $103,000 in early December) has rattled confidence.
Reddit Turns Bearish on Coinbase’s Outlook
Mentions of COIN on Reddit’s r/stocks and r/investing have surged over the past week, but the tone has shifted decidedly negative. Users are no longer celebrating the Q3 beat. Instead, they’re questioning valuation, competitive threats, and the durability of transaction revenue in a cooling crypto market.
Coinbase (COIN) – Thoughts?
by u/Embarrassed-Egg-545 in stocks
In this Reddit discussion, users expressed growing concerns about the company’s valuation and sustainability. One user commented: “I think it’s a good company but I don’t think it’s worth the current valuation. It’s very dependent on crypto prices and trading volume.” Another noted: “The problem with Coinbase is that their revenue is directly tied to crypto volatility. When the market cools off, so does their business.”
And there are real reasons to be concerned:
- Bitcoin has fallen 8% from its December peak, threatening the transaction volume that drove Q3’s 37% sequential revenue jump
- The company trades at 23.7x earnings despite a beta of 3.69, meaning it amplifies crypto volatility in both directions
- Competitors like Robinhood (NASDAQ:HOOD) and Kraken continue to undercut on fees, pressuring Coinbase’s retail margins
Crypto Volatility Weighs on Near-Term Momentum
Trading volume tells the story. Coinbase shares are down 12% from their November high, reflecting the broader pullback in crypto-related equities. Robinhood, by contrast, has held steadier, benefiting from its diversified revenue streams beyond crypto. For investors, the question is whether Coinbase’s $2 billion buyback and institutional derivatives push can offset the risk of a prolonged Bitcoin downturn. Right now, sentiment suggests doubt is winning.
