🔻 Coinbase Stock Down

+ Earnings Disappointment Sends AI and EV Stocks Sliding

August 05, 2025

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MARKETS

*Stock data as of market close*

  • Stocks opened in the red Tuesday after the ISM Services Index showed the sector barely grew in July just 50.1 versus expectations of 51.5. That spooked investors, since services make up the bulk of the U.S. economy. The S&P 500 dropped 0.5%, the Nasdaq 100 lost 0.7%, and only the small-cap Russell 2000 managed to end green with a 0.6% gain.

  • Adding fuel to the fire, President Trump told CNBC he plans to slap a modest tariff on pharmaceuticals, eventually ramping it up to 250% over 18 months. He also teased new semiconductor tariffs as early as next week further rattling markets already on edge from weak economic signals.

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STOCKS
Winners & Losers

What’s up 📈

  • Staar Surgical exploded 46.13% after agreeing to be acquired by Alcon for $28 per share, valuing the company at $1.5 billion. ($STAA)

  • Lemonade soared 29.54% after posting a better-than-expected loss and raising full-year revenue guidance to between $710M and $715M. ($LMND)

  • DigitalOcean jumped 28.88% after beating Q2 earnings and revenue estimates, and raising its full-year guidance. ($DOCN)

  • Syndax Pharmaceuticals gained 21.10% after posting a revenue beat and a narrower-than-expected loss, driven by leukemia drug sales. ($SNDX)

  • Axon Enterprise rose 16.41% after delivering a beat-and-raise earnings report fueled by strong demand for its tasers and police tech. ($AXON)

  • Lattice Semiconductor added 15.21% after beating Q2 revenue forecasts and meeting profit expectations. ($LSCC)

  • UFP Technologies climbed 6.40% after beating EPS estimates despite a slight miss on revenue. ($UFPT)

  • Palantir Technologies gained 7.85% after revenue crossed the $1 billion mark for the first time, leading to raised full-year guidance. ($PLTR)

  • Pfizer rose 5.78% after beating earnings and revenue estimates and lifting its full-year guidance. ($PFE)

    What’s down 📉

  • Gartner plunged 27.55% after issuing full-year guidance that badly missed Wall Street expectations. ($IT)

  • Vertex Pharmaceuticals fell 20.60% after its pain treatment candidate failed in Phase 2 trials despite solid earnings. ($VRTX)

  • Hims & Hers Health sank 12.36% after revenue and EBITDA guidance came in below analyst forecasts. ($HIMS)

  • Yum Brands dropped 5.10% after missing on both revenue and earnings amid sluggish same-store sales at KFC and Pizza Hut. ($YUM)

  • Coinbase declined 6.34% after raising $2 billion through a convertible bond sale. ($COIN)

  • Eaton lost 7.36% after issuing Q3 guidance that came in shy of analyst expectations, despite beating Q2 results. ($ETN)

STOCK
Coinbase Stock Falls After $2B Fundraise and Base Network Outage

Coinbase is under fire from investors after announcing a $2 billion convertible bond offering and suffering its second-ever outage on its Ethereum Layer 2 network, Base. The stock slid more than 6% Tuesday and is down 19% on the week. The outage lasted 29 minutes, pausing Base transactions due to an “unsafe head delay,” and stirred fresh concerns over the exchange’s tech reliability.

A fundraising move that raised eyebrows

The $2 billion raise will come from two tranches of 0% coupon convertible notes maturing in 2029 and 2032, with hefty conversion premiums of up to 55%. Coinbase says the proceeds may go toward debt repurchases, acquisitions, or general operations. But some on Wall Street are reading it as a defensive move after the company’s weaker-than-expected Q2 revenue.

Earnings miss adds to pressure; Last week, Coinbase posted $1.5 billion in Q2 revenue, falling short of estimates and down from $2 billion the previous quarter. While the company remains up 20% year-to-date, it’s now fallen more than 30% from its July peak. The selloff comes despite tailwinds like Bitcoin’s rebound and favorable crypto regulation under the GENIUS Act.

Still some believers on the Street: Citi recently hiked its price target to $505, citing Coinbase’s growing role in Ethereum-linked products and improved fee revenue. But between the Base network hiccup and a dilution-heavy fundraise, investor confidence may take time to rebuild. For now, Coinbase is riding a wave of legislative optimism—while trying to stay afloat operationally.

NEWS
Market Movements

EARNINGS
Earnings Disappointment Sends AI and EV Stocks Sliding

Super Micro cratered after falling short of expectations on both the top and bottom lines. The AI server manufacturer reported adjusted EPS of $0.41, below the Street’s $0.44 estimate, while revenue came in at $5.76 billion versus the anticipated $6 billion. Management had already warned that Nvidia’s Blackwell ramp would take time to materialize, and this quarter confirmed it. The company lowered its ambitious $40 billion full-year revenue target to “at least” $33 billion, which still beats the $30 billion consensus. First-quarter revenue guidance met expectations, but EPS guidance of $0.40 to $0.52 fell well short of the $0.59 analysts hoped for, triggering a double-digit sell-off.

AMD slipped 5 percent in after-hours trading after narrowly missing on earnings while beating revenue expectations. The chipmaker posted adjusted EPS of $0.48 versus $0.49 expected, with revenue hitting $7.69 billion, ahead of the $7.42 billion forecast. CEO Lisa Su said U.S. export restrictions wiped out $800 million in MI308 chip sales to China during the quarter, dragging down AI business revenue. However, with waivers now pending and a pipeline of new AI chips like the Instinct MI400 and MI350 on deck, AMD expects better days ahead especially with major players like OpenAI pledging support. Revenue guidance for Q3 landed between $8.4 billion and $9 billion, well above the Street’s $8.3 billion target. Meanwhile, strong demand for desktop CPUs and gaming GPUs drove a 69 percent jump in the Client and Gaming segment, offering a silver lining amid geopolitical headwinds.

Snap shares tanked more than 15 percent in after-hours trading after narrowly missing Q2 expectations. The company posted a $0.16 loss per share versus the estimated $0.15, and revenue hit $1.34 billion, just shy of the $1.35 billion forecast. ARPU also slipped below expectations at $2.87. Despite CEO Evan Spiegel highlighting growth in monthly active users and progress in AI and augmented reality, investors were underwhelmed. Snap’s Sponsored Snaps and subscription business weren’t enough to counter the advertising softness and investor concern around margins.

Rivian reported a disappointing quarter and cut its full-year outlook, sending shares down over 4 percent after hours. The EV company lost $0.91 per share, missing estimates by a wide margin, though it slightly beat on revenue at $1.3 billion. Rivian’s net loss hit $1.12 billion for the quarter, an improvement from last year but still far worse than expected. Vehicle deliveries dropped 23 percent year over year, and the company lowered its EBITDA guidance to a loss between $2 billion and $2.25 billion. Even with a stockpile of batteries prepped for tariff risk, Rivian’s lack of hybrid models and deeper losses are weighing on investor confidence.

Lucid wasn’t spared either. The luxury EV maker posted a Q2 loss of $0.28 per share on $259.4 million in sales, both worse than Wall Street estimates. Its net loss for the quarter came in at $855.3 million, more than $100 million deeper than expected. Lucid revised its full-year production forecast down to 18,000 to 20,000 vehicles from its previous 20,000 estimate. Despite improving deliveries by 38 percent, the company’s cost structure remains a problem. Shares fell over 6 percent in after-hours trading, erasing most of the gains sparked by its recent partnership with Uber to launch a robotaxi network.

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Calendar
On The Horizon

Tomorrow

It’s a snoozy day for economic data, but the earnings party isn’t slowing down. Tomorrow’s lineup is stacked with big names like Novo Nordisk, McDonald's, Uber, Shopify, AppLovin, DoorDash, Siemens Energy, Airbnb, Emerson Electric, Fortinet, CRH, Honda, Glencore, Occidental, Rockwell Automation, Bayer, NRG, DraftKings, and Duolingo.

But before and after the bell, two heavyweights are worth watching.

Before Market Open:

Disney reports tomorrow morning, and there’s a lot on the table. Between a flashy new theme park rival in Orlando (thanks, Epic Universe), fresh NFL media rights, a new Abu Dhabi park, and cruise line investments, the company has a packed quarter to break down. Oh, and don’t forget about that new Fantastic Four flick.

After Market Close:

Lyft, on the other hand, rolls in after hours, still playing catch-up to Uber in the robotaxi race. Investors will be eager to hear more about its Baidu-backed European expansion and whether ride volume and engagement are still trending up. Last quarter looked solid now the company needs to show it’s more than just second place.

NEWS
The Daily Rundown

  • 🚨 Texas Targets Democrats With Civil Arrest Warrants: Texas issued civil arrest warrants for Democratic lawmakers who fled the state to block a redistricting vote requested by President Trump. The proposed map could add five new Republican seats to Congress. The lawmakers had hoped to run out the clock on the special session. Now, Texas authorities are escalating the standoff to force their return.

  • 💸 U.S. Considers $15,000 Visa Bond Requirement: The State Department proposed a rule that would require business and tourist visa applicants to pay a bond of up to $15,000. Officials say the move is aimed at discouraging overstays. Critics argue it could make travel to the U.S. unaffordable for many international visitors. The proposal comes amid broader efforts to tighten immigration enforcement.

  • 🌍 Plastic Pollution Costs the World $1.5 Trillion a Year: A new report in a top medical journal says plastic pollution is a public health hazard that costs the global economy at least $1.5 trillion annually. The estimate includes health impacts, environmental cleanup, and lost productivity. The study was released ahead of international treaty talks focused on curbing plastic waste. Researchers are calling for urgent, coordinated global action.

  • ⚖️ Israeli Court Blocks Netanyahu’s Attorney General Firing: Israel’s cabinet voted to fire Attorney General Gali Baharav-Miara, who has investigated Prime Minister Netanyahu. But the Supreme Court swiftly froze the dismissal, citing legal concerns. The decision sets up a showdown between Israel’s executive and judiciary. It also deepens political tensions surrounding Netanyahu’s ongoing corruption cases.

  • 💄 Martha Stewart Launches Skincare Line at 84: Martha Stewart is entering the beauty industry with her first-ever skincare line. The 84-year-old lifestyle mogul says she’s “always been obsessed” with skincare. The collection includes moisturizers, serums, and eye creams, with a focus on hydration and anti-aging. Stewart joins a growing wave of celebrities turning personal routines into business empires.

  • 🧘‍♀️ Ty Haney Returns to Outdoor Voices With New Vision: Athleisure founder Ty Haney is back at Outdoor Voices as a partner and co-owner after being ousted in 2020. The brand once hit a $110 million valuation before sliding into financial trouble and shutting down its stores. Now under new ownership, Haney is focused on launching a Gen Z-friendly, fashion-forward collection. She says the comeback aims to make OV “sexy again” in an ultra-competitive activewear space.

  • 🗞 NY Post Expands West With California Edition: The New York Post is launching a California-based spin-off, the California Post, in early 2026. The expansion targets L.A. readers amid a shrinking local news landscape and upcoming elections. News Corp says the Post has been profitable for three years and sees a big opportunity as the L.A. Times struggles with layoffs and losses. With elections on the horizon, the Post is betting big on the Golden State.

  • 🛢 BP Strikes Its Biggest Oil Find in 25 Years: BP announced a major oil and gas discovery off the coast of Brazil, calling it its most significant find since 1999. The Bumerangue block is believed to hold a mix of gas, condensate, and oil, though official volume estimates weren’t shared. It’s BP’s 10th find this year, underscoring its pivot back to fossil fuels. The news comes as the company reports earnings and tries to regain investor confidence in oil.

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