Coinbase stock dips on worse than expected Q2 loss. MTUs fall in July

Coinbase Global (NASDAQ:COIN) dropped 4.9% in Wednesday premarket trading after the cryptocurrency exchange posted worse-than-expected Q2 results and disclosed that its number of monthly transacting users dropped to 8M in July from 9M in Q2.Q2 revenue, trading volume, and assets on its platform fell short of Street estimates, BTIG analyst Mark Palmer wrote in a note to clients. The company posted a Q2 net loss of $1.09B compared with a $430M loss in the previous quarter.However the amount of Coinbase's (COIN) cash burn during the quarter "did not set off alarm bells," Palmer said. Also management pointed out in the conference call that the massive exit of retail investors from its platform that some had feared hadn't materialized.Palmer reiterates his Buy rating on COIN and reduced his price target to $220 from $290.Oppenheimer analyst Owen Lau explains it this way: "We believe the crypto fallout in 1H22 has shaken out many tourists. The remaining investors are long term believers in the stock/digital assets, forming a strong base and are less sensitive to near term volume."He has an Outperform rating and points to the company's diversification into building out the Web3 infrastructure. "We have been emphasizing that Coinbase (COIN) is more than just a trading platform; it is an enabler for digital asset adoption," he said in a note to clients.Note that in May the SA Quant system warned that Coinbase (COIN) had a high risk of ...