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Coinbase Q3 earnings preview: what Wall Street expects and key price levels to watch


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Coinbase is set to report Q3 earnings on November 3, with Wall Street eyeing a revenue surge and loss per share improvement. Find out what analysts predict and explore the key resistance and support levels.

 

Coinbase imageSource: Bloomberg

 

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

When will Coinbase report and what does Wall Street expect?

Coinbase Global Inc (All Sessions) will report earnings on 3 November at 7 am AEDT 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.

Coinbase's earnings history

Coinbase reported robust second-quarter results, exceeding analyst expectations. The company logged revenues of $708 million, surpassing estimates, and reported an adjusted loss of 0.42 per share, which was also better than anticipated.

However, there were some areas of concern in Coinbase's performance. Transaction revenue for the second quarter totalled $327 million, down from $375 million in the previous quarter. This decrease is attributed to low volatility in the cryptocurrency market during that period. Additionally, total trading volume fell to $92 billion, compared to $145 billion in Q1.

What do analysts think?

Data from Reuters indicates that 25 analysts are currently covering Coinbase. Of these, eight have issued 'Buy' ratings, ten have 'Hold' ratings, and seven have 'Sell' ratings. The current median target price stands at $80, representing a 2.5% decline from the closing price as of 24 October 2023.

Coinbase 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. 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.

Coinbase daily chart

Coinbase Daily Candlestick ChartSource: ProRealTime
 

 

 

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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