Crypto exchange Coinbase (COIN) saw a surge in its stock price after releasing its fourth-quarter results for 2023. The earnings report revealed that Coinbase had its first profitable quarter in over two years, with a net income of $273 million.
Changing the Narrative
Analyst Owen Lau from Oppenheimer & Co. believes that Coinbase’s profitable quarter may change the perception that it is an unprofitable company. Lau states that this quarter could be the start of a new image for Coinbase and wonders if the company can maintain profitability for the entire year.
Cutting Costs and Boosting Revenue
Coinbase CEO Brian Armstrong describes 2023 as a great year for the company. He highlights the cost-cutting measures that reduced expenses by 45% compared to the previous year, while also increasing revenue. Armstrong also mentions positive developments such as the launch of Coinbase International Exchange, their Ethereum layer-2 Base, and their role as a custodian for Bitcoin ETFs.
Focusing on Growth and Utility
Looking ahead to 2024, Armstrong outlines Coinbase’s goals of expanding internationally and focusing on derivatives to grow trading fee revenue. The company also aims to drive utility in crypto through payments and developing Coinbase Wallet into an on-chain Super App. Additionally, they will continue working towards regulatory clarity for crypto through legal means and lobbying efforts.
Current Stock Performance
As of now, COIN shares are valued at $180.28 per share, slightly lower than their yearly high of $193.64 reached on Friday.
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