Southern 2x Long Coinbase ETF Falls Nearly 8% as Q3 Core Business Shrinks and Morgan Stanley Downgrades Coinbase to Underweight

Stock News
11/03

Southern 2x Long Coinbase (07711) dropped nearly 8%, falling 7.84% to HK$12.93 as of press time, with a turnover of HK$534,700.

On the news front, according to Coinbase's disclosed third-quarter report, the company's total revenue was US$1.216 billion, down 35% year-over-year (compared to US$1.87 billion in the same period of 2025), with transaction-related revenue plunging 44% year-over-year to US$590 million, and individual investor spot trading volume declining 59% year-over-year; operating profit for the quarter was only US$61.7 million, far below US$481 million in the same period last year.

Additionally, CEO Brian Armstrong, co-founder Fred Ehrsam, and President Emilie Choi have recently established stock sale plans under Rule 10b5-1, involving approximately 13.6 million company shares.

On November 3, Morgan Stanley analyst Michael Cyprys downgraded Coinbase Global, Inc. (COIN.US) from "Equal Weight" to "Underweight," slashing the target price from US$258 to US$120, a reduction of approximately 53.49%. Coinbase's third-quarter revenue was US$1.22 billion, missing Morgan Stanley's estimate by 6%. As a result, Morgan Stanley cut its revenue forecasts for Coinbase in 2027 and 2028 by 28% and 18%, respectively.

It is worth noting that this downgrade marks a repricing by a top Wall Street investment bank of the growth narrative for a leading exchange.

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