Coinbase Stock Tumbles as Q2 Revenue Stumbles Below Wall Street Expectations

Another quarter, another crypto winter chill for Coinbase investors.

The exchange's shares took a 5% nosedive in after-hours trading as Q2 revenue clocked in at $707M—well below analysts' $735M consensus estimate. Turns out playing middleman in a speculative asset class isn't recession-proof after all.

Wall Street's favorite volatility proxy got volatility'd. Trading volumes slumped 18% sequentially despite bitcoin's 30% rally last quarter—proof that retail traders still treat crypto like a casino rather than an asset class.

Silver lining? The 8% institutional volume bump suggests whales are accumulating. But with SEC scrutiny intensifying and stablecoin wars raging, Coinbase's 'build the rails' narrative faces its toughest stress test yet.

Memo to Armstrong: Maybe ease up on the Super Bowl ads until you hit the Super Bowl of profitability.