Coinbase’s Q4 Earnings May Disappoint, Says BitSave CEO
Crypto exchange Coinbase is set to release its fourth quarter and full-year results on February 15th. However, BitSave CEO Zakhil Suresh believes that the upcoming results may not meet market expectations. According to research by Zacks Equity, Coinbase is expected to report a quarterly loss of $0.06 per share, with revenues of $731.94 million. The company has been reporting continuous losses since Q1 2022, raising concerns about its profitability. Suresh suggests that trading volume for Coinbase may be flat due to a lack of upside in trading last year.
Key Metrics to Watch
Investors should focus on key metrics such as trading volume, fees generated, and product revenue when analyzing Coinbase’s results. Trading fees are a significant source of revenue for crypto exchanges, and Suresh believes that ETF revenue generation could help offset any low trading fees. Additionally, the company’s outlook and commentary on estimates, cash flow positivity, and capital expenditure will be important factors to consider.
Results to Shape Market Sentiments
Coinbase’s upcoming results have the potential to change market sentiments and provide insight into the company’s outlook. JP Morgan recently downgraded Coinbase’s rating from “neutral” to “underweight,” which affected market perceptions. The upcoming results will reveal whether Coinbase can improve its image and change the perception of the crypto market among bearish investors.
Impact on the Crypto Industry
As a major player in the crypto industry, Coinbase’s results will influence how the market is perceived. The trading volumes, fees generated, cost reduction efforts, and outlook provided by Coinbase will set the pace for the company’s future performance. Furthermore, the earnings season in the US has already seen disappointing results from various sectors, and Coinbase’s results will shape how the crypto market is viewed by a broader investor audience.
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