Needham analysts trimmed their price target on Coinbase Global, Inc. (COIN) to $220 from $230 on Friday, but they're not abandoning the stock. The firm kept a Buy rating, and lead analyst John Todaro noted that while "crypto weakness continues," some parts of the business are holding up better than expected.

Coinbase reported first-quarter 2026 revenue of $1.4 billion, which was in line with expectations. But adjusted EBITDA of $304 million fell short of the $408 million analysts were looking for. Transaction revenues also missed projections. However, the mix was interesting: retail activity shifted toward the core Consumer app and declined less than institutional activity. According to Todaro's note, this "implies the 'every day retail trader' showed some resilience" even as the broader crypto market struggled.

To combat the Crypto Winter vibes, Coinbase is getting aggressive about diversifying its revenue streams. The company already has 12 products generating over $100 million in annualized revenue. Analysts expect prediction markets to become the 13th. Management is also betting on agentic commerce and x402 transactions to drive long-term growth.

On the regulatory front, management expressed optimism about the Clarity Act, expecting a floor vote by early summer. A key focus for traders remains USDC payments. While the legislative process is still grinding along, Needham reports that Coinbase has a "workaround" for "activity-based rewards" on stablecoins.

Coinbase also cut its headcount by 14%, with management attributing the reduction to market headwinds and a shift toward "AI native operations." Needham's new $220 price target is based on 18 times their discounted 2027 enterprise value/EBITDA estimate.

As of Friday's publication, Coinbase shares were down 0.38% at $192.23.