Coinbase stock falls after earnings miss

Coinbase shares experienced a 4% drop in after-hours trading following a surprise first-quarter loss and missed revenue targets. The decline was attributed to a slowdown in crypto trading activity, which impacted both transaction and subscription-based revenue streams. Despite these challenges, the company is focusing on growth areas like derivatives, prediction markets, and stablecoin activity to diversify its income and reduce dependence on volatile trading fees. Coinbase also announced significant workforce reductions, cutting approximately 14% of its employees as part of a restructuring effort.