Coinbase Global (NASDAQ: COIN) slid 10% during the trading session on August 9 after the cryptocurrency trading platform released earnings, revealing that there was less trading volume and a reduced number of monthly users.
On the whole, earnings showed revenues of $808.3 million, a year-on-year (YoY) decrease of 63.7%, missing estimates by $60.07 million; additionally, the earnings per share (EPS) were -$4.98, missing estimates by $2.21.
The shareholder letter that followed the earnings stated that the firm is cautiously optimistic about the future.
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“Clearly, we are operating through stressed market conditions, but based on the expense management initiatives taken in Q2, we are cautiously optimistic about our ability to operate within this guardrail. That optimism assumes that the crypto market cap doesn’t fall meaningfully below July levels and that we do not see changes in our current customer behaviors.”
COIN chart and analysis
Volume has been considerably higher in the last couple of days, with both the short-term and long-term trends negative.
In the previous month, COIN has been trading in the $50.34 to $116.30 range, with the technical analysis indicating that the support line is at $56.41 and the resistance at $93.05.
Despite the earnings, analysts on Wall Street rate the shares a ‘moderate buy,’ predicting that in the next 12 months, the stock could trade at $111.05, 26.65% higher than the current trading price of $87.68.
Some of the details shared during the earnings call look more problematic than others, as the trading volume slid to $217 billion from the previous $309 billion in Q1 and $462 billion a year ago. At the same time, the number of monthly users declined to 9 million compared to 9.2 million in March.
All in all, a continuation of the negative trend and a decline in active users and trade volumes could mean more volatility and a possible decrease in the stock.
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