Jump to content
The Twitter Feeds are now back on the Platform ×

Coinbase shares tumble after Q4 earnings

Recommended Posts

Crypto exchange Coinbase saw a 5.5% drop in shares all-sessions on the IG platform on Tuesday after it reported a big drop in trading volume.

 Jeremy Naylor | Writer, London | Publication date: Wednesday 22 February 2023 

IGTV’s Jeremy Naylor looks through the numbers which showed a better than expected loss of $2.46 per share on revenue of $629 million.

While that is marginally better than EPS of $2.51 and $588m in revenue anticipated by analysts, it was the drop in trading volumes that concerned many.

Coinbase trading volume plunged to $145 billion in the fourth quarter, compared with $547bn a year earlier.

Retail traders also pulled back significantly, with their trading volume in the quarter plummeting nearly 89% to $20bn.

Coinbase Q4 earnings

One of the world's largest listed crypto exchanges Coinbase reported fourth quarter (Q4) earnings last night.

Despite a slight beat on the earnings per share (EPS), the stock tumbled five and a half percent. Of course, it was a quarter that was dominated by the collapse of FTX last November.

Let's take a look at the figures which as I said slightly better than expected at a loss of 2.46. We'll be looking for a loss of 2.51. Revenues coming through at $629 million against an expectation of $588 million. This time last year that revenue was two and a half billion dollars.

Coinbase trading volumes plunging $145 billion in the fourth quarter compared to 547 billion this time last year. Retail traders also pulled back significantly. Trading volume in the quarter plummeting nearly 89% to just $20 billion.

Share price chart

Let's take a look at the share price chart before we take a look at what happened late last night. Just to explain what's been going on in terms of the longer term picture.

This is the entire trading of Coinbase since it came to the market back in April 2021. It came to the market at $225, which is this red dotted line in the middle here. We have traded above that, in fact the high point back on the 9th November 2021, it was trading at $370.

Now, here we are now here at a trade of $61.39. We've just got the all-sessions trade getting under way here now today on this Wednesday morning, you can see the drop that we saw yesterday resting at the 200 day moving average.

The Coinbase trading volume was really what happened last night and that took completely the traders by surprise. And as a result of that, we saw that stock down.

In among some of the other areas, the markets, subscription services revenue though not doing too bad overall, rising about 33% to $282 million in the period. But that was offset by that big drop in the trading volume.

So the outlook for Coinbase depends on the direction of travel for the crypto markets. But on the whole, at the moment, Coinbase finding the going tough.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 31/03/23 11:43
  • Posts

    • #USDCAD: Time For PullbackUSDCAD reached a key level.Testing that, the price broke and closed above the resistance line of a falling wedge pattern.I expect a pullback now.Goals: 1.355 / 1.3577  
    • Charting the Markets: 31 March The FTSE 100, DAX 40 and Nasdaq 100 surge higher on a positive outlook as EUR/USD, GBP/USD pause their ascents while USD/JPY continues to rise as the greenback appreciates. WTI remains capped by resistance, gold forms a technical triangle as Robusta coffee trades near six-month highs.   Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 31 March 2023                 This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
    • Content streaming business Netflix has announced that it will restructure its film unit to make fewer movies each year. Part of the process will also see it centralise decision-making.  Jeremy Naylor | Analyst, London | Publication date: Friday 31 March 2023  It will combine units that produce small and midsize pictures, a change the company says will result in a handful of layoffs. Netflix is slightly higher all-sessions on the IG platform on this Friday morning, holding on to recent gains that we've seen for the stock. It's restructuring its film group to make fewer movies each year and try to centralise its decision making. Now this is a cost cutting exercise, so it's no real surprise that we've seen the markets wanting to hold on to the gains that we've seen at Netflix. Bloomberg is reporting that Netflix will combine its units that produce small and mid-size pictures, a change it says will result in some layoffs. Share price chart Let's take a look at the share price chart and I think you can see that the recent gains we've had way down here, the lows that we saw back on the 13th of March at $285. We're currently trading at 33975. As I said, just opened all-sessions on the IG platform with a small rise on the day. Lisa Nishimura, who led Netflix into stand up comedy and original documentaries, will depart after more than 15 years at the company. And Ian Bricke, a vice president of the film group, is also leaving after more than a decade. Bricke helped make the Kissing Booth, the movie franchises that Netflix has produced. So you can see at the moment we're up by a margin of almost half of 1%. But I think the bottom line is, it's holding onto the gains. This is essentially a cost-cutting exercise and a reduction of risk. But what it means for the long-term remains to be seen. It's all about Netflix and the competitors and the competitors are now getting into sports which Netflix doesn't yet do.
  • Create New...