Coinbase shares continue to be under pressure as JPMorgan lowers its price target ahead of its fourth-quarter earnings report due this week.
In a still-weak crypto market, the move adds to investors' concerns about the performance of the largest US crypto exchange.
So far this year, Coinbase shares have fallen nearly 30%, and are down more than 50% since Bitcoin hit a record high of around $126,000 in October.
The fall in crypto prices and a decline in trading activity are seen as the main factors weighing on the company's earnings.
JPMorgan analyst Ken Worthington lowered his price target for COIN from $399 to $290.
Despite the cut, he remains optimistic about the stock's long-term potential, with the new target suggesting significant upside potential from current prices.
For the fourth quarter, JPMorgan expects Coinbase's earnings to be impacted by lower trading volume, weak crypto prices, and slow growth in USDC stablecoin balances.
Adjusted EBITDA is estimated to have fallen to $734 million from $801 million in the previous quarter.
While the acquisition of crypto derivatives trading platform Deribit is expected to help offset some of the weakness, other analysts such as Barclays and Compass Point have warned that the subscription and services segment could also disappoint.
Investors are now turning their attention to management's comments on early 2026 direction, the stability of USDC revenue, and the ability of new businesses such as derivatives and futures to reduce Coinbase's reliance on Bitcoin price volatility.
