​​​​Coinbase stock price – what to expect ahead of Q3 earnings

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Coinbase endured a tough Q2, but some improvement in performance is expected for Q3 compared to last year, with the loss per share expected to shrink.

Source: Bloomberg

 

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 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 27 October 2023 14:14

Coinbase earnings – what does Wall Street expect?

Coinbase Global Inc (All Sessions) will report earnings on 2 November for its third quarter. Revenue is expected to be $653.19 million, up 10% compared to last year. It is forecast to report a loss per share of 54 cents, which is a significant improvement on last year’s -$2.43 for Q3.

What happened at the last earnings?

Coinbase reported strong second-quarter results, surpassing analyst expectations. The company recorded revenues of $708 million, exceeding estimates, and reported adjusted earnings of a loss of 0.42 per share, which was also better than expected.

However, there were some areas of concern in Coinbase's report. Transaction revenue for the second quarter came in at $327 million, down from $375 million in the previous quarter. This decline can be attributed to the low volatility in the cryptocurrency market during this period. Additionally, total trading volume dropped to $92 billion, compared to $145 billion in Q1.

Coinbase outlook – what do analysts think?

Data from Reuters shows that 25 analysts currently cover Coinbase. Of these, eight have ‘buy’ ratings, with ten ‘holds’ and 7 ‘sell’ ratings.

The current median target price is $80, which would be a 2.5% decline from the close as of 24 October 2023.

Coinbase shares – technical analysis

The price has consolidated since August, after a pullback from the July peak. Recent gains have seen the price rebound before sellers pushed the price lower again.

Coinbase Daily Candlestick Chart

Source: ProRealTime

It has faltered around the $83.50 mark, a key zone of resistance since September last year. A close above $86.20 might provide a bullish catalyst, and open the way to further gains.

A more bearish view requires a drop back below $70, which has provided support since August.

 

 

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