Argus Just Slashed Its Earnings Estimates for Coinbase. Should You Dump COIN Stock Here?

Core Viewpoint - The recent downturn in cryptocurrency prices has negatively impacted Coinbase (COIN), leading to downward revisions in earnings per share (EPS) estimates and raising concerns about the company's valuation and earnings visibility [1][2]. Company Overview - Coinbase is a financial services platform and the largest cryptocurrency exchange in the United States, founded in 2012 and headquartered in New York. It serves both retail and institutional investors, providing tools for trading cryptocurrencies and developing decentralized applications [3]. Stock Performance - COIN stock has decreased by 13.36% over the past year, underperforming the S&P 500, which returned 12.36%. The stock experienced a significant increase of three times between April and July before entering a downtrend [4]. Valuation Metrics - The stock trades at a 2026 P/E ratio of 31.56x, which is higher than peers like the London Stock Exchange (21.54x) and Nasdaq (26x). However, it is at a 24% discount compared to its own five-year historical average [5]. - The high valuation reflects the stock's association with retail trading popularity, making traditional peer comparisons less relevant [5][6].