Coinbase earnings snapshot: where is the COIN share price heading on the stock exchange?
Coinbase results will reflect a decline in cryptocurrency trading activity in the third quarter, but has interest rebounded following a price resurgence in the market in recent weeks? We explain what to expect and consider how Coinbase shares might react on the stock market.
When will Coinbase release third quarter results?
Coinbase is expected to release its third quarter results on Tuesday, November 9.
Coinbase Q3 Results Snapshot: What To Expect From The Results
The third quarter will be a test for Coinbase. After processing record transaction volumes and securing its highest number of active users in the second quarter, both measures are expected to have eased in the third quarter following a downturn in the cryptocurrency market.
Bloomberg figures suggest that market-wide cryptocurrency trading activity fell 37% in the third quarter compared to the second, due to lower prices. Bitcoin price and Ethereum in July, with only a limited recovery seen before. the quarter ended at the end of September. Other data from The Block, which tracks cryptocurrency transactions in the market, suggests that overall transaction volumes fell to $ 2.9 trillion in the third quarter, from $ 4.6 trillion during the boom observed in the last quarter. second.
(Source: The Block)
However, much of this may already be included in the price. Coinbase warned its latest round of results that monthly trading users and trading volumes saw a sharp decline in July compared to what was seen in the second quarter thanks to falling crypto prices and volatility, prompting him to warn that both measures would deteriorate from quarter to quarter. within three months until the end of September.
The number of users doing monthly transactions is expected to have slipped to 7.1 million in the third quarter from 8.8 million in the second, but verified users are expected to drop from 68.0 million to 72.2 million. Meanwhile, transaction volumes are expected to drop to $ 309.0 billion from a record high of $ 462.0 billion in the previous quarter.
Coinbase said the average number of monthly transaction users over the entire year will vary from 5.5 million to 8.0 million, with a median range of 7.0 million.
Wall Street expects total revenue to be $ 1.57 billion. That would be up from just $ 286.7 million the year before, but down from a record high of $ 2.22 billion in the second quarter.
Adjusted EBITDA Expected to Fall to $ 662.6 Million from $ 1.15 Billion in Q2 Due to Weaker Business Activity and Spending Increase as Coinbase Continues to Focus on Expansion and Development compared to profitability. Meanwhile, net income is expected to dip to $ 408.9 million from $ 1.61 billion recorded in the previous quarter. Net income is reportedly still up from $ 81.3 million a year earlier.
Coinbase’s key task will be to show that the decline in activity in the third quarter is a hit rather than a long-term trend. The fact that Coinbase shares have risen more than 27% on the exchange since its last quarterly update shows that markets believe the outlook for the fourth quarter is much better than described for the third. The price of Bitcoin has jumped more than 40% in value since the end of September while Ethereum has climbed more than 50%.
Additionally, Coinbase could also be on the verge of capitalizing on interest in lesser-known cryptos such as Doge and Shiba Inu, as the company has pledged to bring more assets to its platform at a faster pace over time. ‘to come up. Coinbase usually offers a glimpse of how the current quarter started when it releases its results and investors will expect a good outlook.
Brokers remain bullish on Coinbase’s outlook and have an average buy rating on the stock with a target price of $ 382.65 on the stock exchange, implying that there is more than 11% upside potential per share. compared to the current share price.
What next for the Coinbase share price on the stock exchange?
Coinbase (COIN) stock has traded on the exchange within a limited range since June, capped higher at $ 296 USD and lower at $ 205 USD.
Price broke out of the upper band in mid-October and has traded in an ascending channel since then.
The SMA-50 moving average on the 4-hour chart has crossed the SMA-200 moving average providing a bullish signal. However, the RSI has moved into overbought territory, which warrants caution. There could be some consolidation or movement lower before further gains.
Immediate resistance can be seen at $ 348 USD per level starting April 15th, beyond that there is not much to do. Look perhaps towards $ 380 USD on the upper band of the bullish channel.
You would need to go below $ 297 USD to reverse the short-term uptrend.
Coinbase chart (NASDAQ: COIN) 4 hours
By Joshua Warner, Forex.com » Official site
Disclaimer: The information and opinions contained in this report are provided for general information only and do not constitute an offer or a solicitation to buy or sell forex foreign exchange contracts or CFDs. Although the information contained in this document has been taken from sources believed to be reliable, the author does not guarantee its accuracy or completeness, and assumes no responsibility for any direct, indirect or consequential damages that may result from the fact that someone relies on such information.