Investing.com – Compass Point reiterated a Sell rating and $140.00 price target on Coinbase Global () following announcements by the CFTC on May 29 to expand crypto derivatives in the U.S. The bearish outlook aligns with broader analyst sentiment, as InvestingPro data shows 9 analysts have revised their earnings downwards for the upcoming period. The stock currently trades at $180.86, down 27% over the past six months.
The CFTC announcements included Kalshi listing Perpetual Futures on Bitcoin, Coinbase’s U.S. users gaining access to Deribit’s offshore derivatives, and CME expanding crypto futures and index options trading to 24/7 from 24/5.
Compass Point expects U.S. derivatives to provide limited revenue growth for Coinbase amid the crypto winter, where existing perpetual-style futures are already cannibalizing spot trading commissions. The firm also expects market share losses to traditional eBrokers alongside much lower barriers for listing perpetual contracts than spot crypto.
Kraken and Robinhood already announced perpetual trading while Interactive Brokers and BULL already integrate with Kalshi. Competition and low switching costs limit Coinbase’s ability to exert pricing power relative to spot trading, particularly among more sophisticated users that are most likely to trade these products, according to Compass Point.
The analyst noted that the expanded derivatives market presents challenges for Coinbase’s revenue model in the current market environment. According to InvestingPro analysis, Coinbase appears overvalued at current levels, with the stock trading at a high earnings multiple of 63.4. For investors seeking deeper insights, a comprehensive Pro Research Report is available, transforming complex Wall Street data into clear, actionable intelligence.
In other recent news, Coinbase Global reported first-quarter 2026 earnings that revealed softer market conditions and a decline in transaction activity. This prompted B.Riley to lower its price target on Coinbase stock to $203 from $243, maintaining a Neutral rating due to a softer near-term revenue outlook. In contrast, Benchmark raised its price target to $270 from $260, maintaining a Buy rating, following the same earnings report. Canaccord Genuity reiterated a Buy rating with a $300 price target, highlighting Coinbase’s market share gains, especially in derivatives trading and prediction markets. Mizuho also adjusted its price target upward to $200 from $170, citing the influence of derivatives and prediction markets on revenue. Additionally, the SEC is anticipated to unveil an innovation exemption for tokenized stocks, potentially impacting the trading landscape for digital versions of publicly traded shares. These developments reflect varied analyst perspectives and regulatory changes affecting Coinbase.
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