The Quarterly Report of Coinbase Exchange
The quarterly financial and economic data of crypto exchange Coinbase was released at the end of last week. Although the data was better than expected, the shares still lost ground on the stock market. The assumption was that revenues would be less than $630 million, but the actual figure was just under $710 million. Net revenues were only slightly lower at $663 million, and operating expenses were down by 1% to $664 million. Despite an Adjusted EBITDA of $194 million, the quarter ended with a net loss of $97 million. Operating expenses not falling and doubts about future resilience are contributing to the decline in Coinbase’s stock price.
Coinbase’s Share Price on the Stock Exchange
Coinbase’s share price on the stock exchange opened at $89 and closed at $87 on Friday. It has not deviated much from this value in the post-market and pre-market sessions. Although there has been a loss of 17% since mid-July, the current values are still higher than the 2023 low. Since its listing in April 2021, Coinbase’s stock price has been on a downward trend. If there is a recovery in the price of Bitcoin and crypto markets in general, a sharp recovery in Coinbase’s stock can be expected.
Why has Coinbase’s COIN Fallen?
Coinbase’s stock price fell despite a better-than-expected quarterly report because while revenues were higher than expected, expenses remained essentially the same. This raises concerns about the company’s future resilience if the crypto markets do not rebound soon. Market sentiment is more focused on the future than the recent past, leading to doubts about the medium/long-term prospects for Coinbase. Some analysts predict further price falls, with a potential return to above $115 needed to reverse the downward trend.
Hot Take
Although Coinbase’s quarterly report showed better results than expected, concerns about the company’s future resilience and stagnant operating expenses have led to a decline in its stock price. The market is more focused on the future outlook, and a solid recovery is needed to reverse the downward trend. Despite the recent loss, if there is a recovery in the price of Bitcoin and the crypto markets, there is potential for a sharp recovery in Coinbase’s stock. However, it remains uncertain whether such a recovery will occur.
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