Coinbase Earnings Expectations Are Suppressed Following the Crypto and Stock Market Crash

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May 10, 2022 by Vignesh Karunanidhi

Coinbase, one of the world’s largest crypto exchanges, is about to disclose its Q1 financial report. Still, expectations, as well as the company’s stock value, have been hammered by the crypto market downturn.

The biggest financial report in the crypto business is expected to disappoint. Coinbase Global Inc. will disclose the report on May 10, and it is unlikely to match the company’s record-breaking revenue numbers from Q4 2021.

According to FactSet, the average analyst estimate for the company’s first-quarter sales is $1.5 billion. As a consequence, adjusted profits per share are down one cent.

According to Yahoo! Finance, revenue for this and upcoming quarters is expected to range between $1.24 billion and $1.92 billion.

Is the crypto downfall affecting just Coinbase?
Coinbase generates nearly all of its money through trading fees, which are among the highest in the business. The firm’s high-earning transaction fees have been impacted by the big drop in crypto markets this year.

The disappointing reaction to Coinbase’s much-hyped NFT marketplace is another factor affecting income. When compared to its competitors, the corporation only allowed a few people access, resulting in relatively low trade volumes.

Coinbase’s monthly transactional users (MTUs) may have also decreased during a quarter when crypto markets were primarily consolidating.

Between January and March of this year, most major crypto assets were range-bound, but in the last week, they have fallen to their lowest levels in 10 months.

Coinbase stock has taken a significant knock since the start of trade this week, indicating that Wall Street has factored in the disappointing earnings forecasts.

According to MarketWatch, COIN fell 19.5 percent in after-hours trade on Monday, May 9, to just $83.45. The stock price has plummeted by 47 percent in the last month, outperforming the cryptocurrency sector.

COIN is presently trading at an all-time low, down more than 75% from its all-time high of $342 in November.

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