Crypto Industry Equities — Coinbase, Robinhood & Industry Downturn

weakening
Horizon: n/a Evidence: 23 Contributors: 10 Updated: 2026-04-10

Verdict

Crypto industry equities face a convergence of headwinds: Coinbase's 2026/27 EPS estimates were slashed 46%/11% by Goldman Sachs following weak Q4 results and soft 1Q26 guidance, with transaction revenue 11% below Street and subscription revenue 22% below estimates [E3752][E3753][E3754]. Structural margin compression is underway as retail take rates decline from mix shift toward advanced/Coinbase One products, while adjusted expenses rose 26% YoY to $1.3bn [E3751][E3755]. The broader crypto ecosystem shows signs of speculative exhaustion — Aave USDC yields collapsed to 2.2% from 6%+ in Nov 2025, USDe assets shrank from $15B to $6B, and Robinhood's equity volumes fell 14% MoM with app downloads down 26% MoM as of early April 2026 [E653][E2049]. Contrarian bulls like Raoul Pal see deeply oversold technicals and are doubling Coinbase positions based on DeMark exhaustion signals [E4010][E3396], but the fundamental deterioration in volumes, yields, and margins creates a contested outlook where timing the turn carries substantial risk.
What would falsify this thesis:
Evidence Balance
1.00
Velocity
steady
Consensus
10 contributors
Contestation
4%
Confidence
72%
Market

🟢 Supporting (17)

[E890] Goldman Sachs cuts Coinbase target 15% to $264. 4Q25 EPS $1.46 vs $1.39-1.69 consensus, net revenue 3% below Street. Weak 1Q26 guidance: transaction revenue $920mn (11% below), subscription revenue $590mn (22% below). Retail take rate compression from product mix shift and lower Coinbase One fees.
@Stuart Hardy · 2026-04-07 · slack
[E656] Asked why crypto is not bouncing with the market, suggesting disconnection from equity recovery.
@Gaetan Warzee · 2026-04-07 · slack
[E653] Crypto lending yields collapsed — Aave USDC yield at 2.2% down from 6%+ in Nov 2025. USDe yield fell from 5.5% to 3.5%, assets dropped from $15B to $6B.
@Scott Leavitt · 2026-04-07 · slack
[E4011] Trade recommendation: BUY HOOD within Core Portfolio. HOOD completed 5-wave lower but no 13-count yet. First weekly 9 buy setup since November 2023. Testing -2 standard deviation band of long-term regression channel. Fifth 40-50% corrective move this cycle — deeply oversold for 70-vol equity equivalent to 10% SPX pullback.
@Raoul Pal (Global Macro Investor) · 2026-03-03 · r2
[E4010] Coinbase completed 5-wave move lower into DeMark wave 5 projection at $146 with daily 13 buy counts cluster. Weekly 9 buy setup in play with price reversing below TDST at $160. Added to long-term portfolio in February Flash Update. Circle (CRCL) up 48% since added last month — dominant stablecoin player.
@Raoul Pal (Global Macro Investor) · 2026-03-03 · r2
[E3751] Goldman Sachs highlights structural margin compression at Coinbase with retail take rate compression in Q4 due to mix shift from simple to advanced products and larger volume from Coinbase One users with lower fee rates. Management noted this compression could continue. Pre-tax margins (ex. SBC) decline 16pp/3pp for 2026E/27E.
@Goldman Sachs (James Yaro, Divyam Harlalka, Matthew Weng, Lokesh Kumar Sangewar) · 2026-02-13 · r2
[E3755] Adjusted expenses rose 26% YoY to $1.3bn. Tech & development and G&A guided at $925-975mn for 1Q26 (3% above consensus), driven by Echo and Deribit acquisitions (3pp of 11% sequential increase) and investments in product development, customer support, and compliance infrastructure. Goldman's 2026E/27E pre-tax margins (ex. SBC) decline 16pp/3pp.
@Goldman Sachs (James Yaro, Divyam Harlalka, Matthew Weng, Lokesh Kumar Sangewar) · 2026-02-13 · r2
[E3752] Goldman Sachs reduces 2026/27 EPS estimates by 46%/11% following COIN's weak Q4 results and softer 1Q26 guidance. Price target cut 15% to $264 from $310, with Q5-Q8 P/E multiple lowered to 31.5x from 34.0x. Core EPS of $1.46 beat GSe of $1.39 but net revenue came in 3% below consensus. Maintains Buy rating with 87% implied upside from $141.09 price.
@Goldman Sachs (James Yaro, Divyam Harlalka, Matthew Weng, Lokesh Kumar Sangewar) · 2026-02-13 · r2
[E3753] Transaction revenue of $983mn came in 4% below consensus, down 37% YoY. 1Q26 QTD transaction revenue of $420mn implies ~$920mn for the full quarter, 11% below Street estimates. Retail take rate compression noted due to mix shift from simple to advanced products and higher Coinbase One user volumes with lower fee rates.
@Goldman Sachs (James Yaro, Divyam Harlalka, Matthew Weng, Lokesh Kumar Sangewar) · 2026-02-13 · r2
[E3754] Subscription and services revenue of $727mn came 3% below consensus, up 13% YoY, but 1Q26 guidance of $590mn midpoint is 22% below Street estimates. Lower staking revenue (-16% vs. Street) driven by lower crypto prices and gross staking yield compression as protocol maturation reduces reward rates.
@Goldman Sachs (James Yaro, Divyam Harlalka, Matthew Weng, Lokesh Kumar Sangewar) · 2026-02-13 · r2
[E3757] Operating expenses elevated in Q4 with adjusted expenses of $1.3bn rising 26% YoY. The sequential 11% increase driven by Deribit and Echo acquisitions (3pp) plus continued investment in product teams, customer support, and compliance infrastructure. 1Q26 tech & G&A guidance of $925-975mn is 3% above consensus.
@Goldman Sachs (James Yaro, Divyam Harlalka, Matthew Weng, Lokesh Kumar Sangewar) · 2026-02-13 · r2
[E3760] Coinbase repurchased 3.3mn shares in Q4 2025 and a further 4.9mn shares through Feb 10, 2026 as part of the $2bn repurchase program. An additional $2bn authorized by the board in January 2026, demonstrating capital return commitment despite weaker operating results.
@Goldman Sachs (James Yaro, Divyam Harlalka, Matthew Weng, Lokesh Kumar Sangewar) · 2026-02-13 · r2
[E3759] Goldman's 2026E/27E revenue estimates fall by 10%/7%, while adjusted pre-tax margins (ex. SBC) decrease by 16pp/3pp. The 2026E/27E adjusted EPS estimates decline by 46%/11%, reflecting persistent margin compression from weaker transaction revenue and elevated operating expenses.
@Goldman Sachs (James Yaro, Divyam Harlalka, Matthew Weng, Lokesh Kumar Sangewar) · 2026-02-13 · r2
[E3770] Goldman maintains Buy rating on COIN despite weaker results, citing long-term revenue diversification potential through the 'Everything Exchange' (prediction markets and equities offerings), stablecoin/payments scaling, and on-chain adoption acceleration. 2026E transaction revenue only falls 2% despite near-term weakness.
@Goldman Sachs (James Yaro, Divyam Harlalka, Matthew Weng, Lokesh Kumar Sangewar) · 2026-02-13 · r2
[E3396] Coinbase has been 'killed' but shows a 9/13/13/13 DeMark pattern on daily. Weekly pattern is a 'massive expanding range megaphone' that probabilistically leads to much higher prices and would break the cup-and-handle formation. Raoul is doubling his Coinbase position and adding the second position to the long-term book.
@Raoul Pal / Julien Bittel (GMI) · 2026-02-09 · r2
[E3397] GMI is explicitly adding to Coinbase at current levels, doubling the position and placing the second tranche in the long-term portfolio book. This represents high conviction in the equity despite the recent selloff.
@Raoul Pal / Julien Bittel (GMI / Real Vision) · 2026-02-09 · r2
[E3466] Pal maintains long Coinbase equity position (entry $79.93, +143.6%) and long-term Coinbase position (entry $101.60, +91.7%). COIN June '26 400 Calls (entry $18, -89.2%) are underwater. COIN January '26 400 Calls expired -100%. The positions reflect conviction in crypto infrastructure despite near-term pain.
@Raoul Pal (Global Macro Investor) · 2026-02-09 · r2

🔴 Challenging (0)

No challenging evidence yet.

🟡 Contested (1)

[E3369] Coinbase is at the center of the stablecoin yield legislative battle, with CEO Brian Armstrong withdrawing support from bills containing restrictive language on yield offerings. Banks argue crypto platform yield offerings risk massive deposit flight (potentially trillions) from low-interest bank accounts.
@J. King / Peter L. Brandt (ChartWizardsNFT) · 2026-02-09 · r2
💬 Commentary (5)
[E2049] No longer personally invested (sold at Gala). Goldman reduced EPS estimates 8%/5%/3% for 2026-2028. Lowered Q5-Q8 P/E to 37x, price target cut 6% to $102. Net new accounts 140k (9% annualized) reaching 27.4mn but equity volumes -14% MoM, options -10% MoM. App downloads fell 26% MoM. Maintain Buy rating. Key risks: lower retail engagement, rate cuts impacting NII, PFOF regulation.
@Stuart Hardy · 2026-04-07 · slack
[E657] Real economy is sucking money away from speculation. Weapons and manufacturing need capital, so less flows into long duration/financial assets.
@Stuart Hardy · 2026-04-07 · slack
[E655] Got about ~18% back from FTX on Mar 31. Most of it is done now with a long tail of smaller payments over several years.
@thibault · 2026-04-07 · slack
[E4111] Alternative Asset Managers stocks have declined ~27% YTD, bringing valuations below post-Liberation Day lows with NTM P/E (net of SBC) at ~15x. This reflects concerns about software exposure across private equity and private credit as well as fears that weaker investment performance could hamper growth. However, GS sees the selloff as overdone given firmwide software exposure averaging only ~7% of AUM.
@Goldman Sachs Global Investment Research (Allison Nathan, Jenny Grimberg, Ashley Rhodes et al.) · 2026-03-10 · r2
[E3758] Goldman Sachs identifies key downside risks for Coinbase: insufficient crypto deregulatory reform, slower product evolution outside trading, declining crypto market cap over time, and pricing pressure impacting margins. These risks frame the structural challenges facing the company despite the Buy rating.
@Goldman Sachs (James Yaro, Divyam Harlalka, Matthew Weng, Lokesh Kumar Sangewar) · 2026-02-13 · r2

Events Reckoned With (6)

Material events in this theme's relevance window. A theme page is only as fresh as the events it has reckoned with — unreckoned events signal the analysis may be stale.

FTX partial distributions (~18%) received by creditors reckoned
2026-03-31
The Information reports crypto downturn approaching 6-month mark with no end in sight reckoned
2026-03-30
Goldman Sachs cuts Coinbase price target to $264 on Q4 results reckoned
2026-02-13
Goldman Sachs cuts Coinbase price target 15% to $264 on weak guidance reckoned
2026-02-13
Goldman Sachs cuts Coinbase price target 15% to $264 on weaker 4Q25 results reckoned
2026-02-13
Coinbase 4Q25 earnings - EPS $1.46, Goldman cuts target to $264 reckoned
2026-02-13