Investment Rating - The report maintains a rating of "Buy" for the company with a target price of $13.88 [6][10]. Core Insights - The company has experienced rapid growth in client assets, driving sequential increases in brokerage and interest income. The strategy of prioritizing high-quality clients and deposits continues to yield positive results, while the crypto business shows significant growth potential [2][10]. - In Q2 2025, the company added 39,800 net new deposit clients, a 46.24% increase year-over-year, achieving two-thirds of its annual target of 150,000 net new clients. The majority of new clients came from Singapore and Southeast Asia [10]. - The total trading volume increased by 162.19% year-over-year to $5,014.92 billion, leading to a brokerage revenue increase of 98.95% to $123 million and interest income growth of 27.78% to $112 million [10]. Financial Summary - Total revenue is projected to grow from $273 million in 2023 to $976 million by 2027, reflecting a compound annual growth rate (CAGR) of approximately 29% [4][11]. - Net profit is expected to rise significantly from $33 million in 2023 to $301 million in 2027, with a notable increase in profitability metrics such as ROE, which is projected to reach 23.2% by 2027 [4][11]. - The company’s earnings per share (EPS) estimates have been revised upward for 2025-2027, now projected at $0.76, $1.18, and $1.71 respectively [10][11]. Market Performance - The current stock price is $11.57, with a 52-week price range of $3.39 to $14.48. The market capitalization stands at approximately $2,043.70 million [7][10]. - The company has achieved a significant increase in client asset scale, which grew by 36.31% year-over-year to $52.056 billion, driven by net deposits and market gains [10].

Core Viewpoint - Coinbase's stock price significantly declined after the release of its latest earnings report, primarily due to second-quarter revenue falling short of analyst expectations despite a year-over-year revenue increase [1][2] Group 1: Financial Performance - Coinbase reported $1.5 billion in revenue for the second quarter, a 3.3% year-over-year increase, but below the market expectation of $1.59 billion and a notable decline from $2 billion in the first quarter [1] - The company's net profit surged to $1.43 billion from $36.13 million in the same period last year, translating to earnings per share of $5.14 compared to $0.14 [1] - Subscription service revenue grew by 9% year-over-year to $655.8 million, but fell short of the expected $705.9 million [2] Group 2: Trading Volume and Market Conditions - Retail trading volume increased by 16% year-over-year to $43 billion, yet it was below the analyst forecast of $48.05 billion [2] - The overall cryptocurrency market capitalization remained stable, leading to a decline in Coinbase's spot trading volume in both the U.S. and global markets [2] - Analysts noted that the market's downturn in the second quarter was anticipated following a strong first quarter driven by favorable regulatory expectations from the Trump administration [2] Group 3: Business Diversification and Strategy - To reduce reliance on cryptocurrency trading volume, Coinbase is actively expanding into new business areas, including traditional stocks, prediction markets, foreign exchange, government bonds, and commodities [3] - The company’s CFO indicated that the technology and regulatory frameworks are maturing, marking a critical turning point for the industry [3] - Following the acquisition of the options exchange Deribit, Coinbase plans to continue its merger and acquisition strategy [4]