Coinbase Revenue And Earnings Expected to Drop Sharply

Share This Post

Coinbase Global will report its revenue and earnings for the second quarter after Tuesday’s close, and analysts expect the company’s revenue to drop sharply. The expected earnings report will give investors a glimpse of how the exchange has performed following the crypto market crash. 

Wall Street analysts predict a sharp drop in Coinbase’s revenue by almost 25%, with the expected revenue to come in at $874 million. Similarly, experts conversant with the happenings in the company have predicted that the company’s quarterly loss will widen to $2.47 per share, a significant change from the $1.98 the quarter before. 

The second quarter is dubbed as one of the most tumultuous periods for the crypto industry, which is still in its nascent phase. May kicked off with a popular stablecoin failing that caused chaos in the market, leading to sharp sell-offs. Moreover, many crypto projects, including Voyager Digital, Three Arrow Capital, and Celsius Network, declared bankruptcy. Bitcoin, the leading cryptocurrency by market cap, fell sharply below $20,000, shedding nearly 70% from its November all-time high within the same period. It has recovered some lost ground since then and is currently trading above $23,000. 

Crypto winter and the current realities

The crypto winter, a phrase used within the crypto space to describe bear markets, has sent many coins to the ground for months. Coinbase has suffered significant losses during this period. Since the year kicked off, Coinbase shares have plummeted by over 65% to trade at $92. For context, lower prices for digital assets such as Bitcoin and Ethereum also usually affect transaction fees. 

While the crypto market seems to be recovering, trading volumes on Coinbase have remained suppressed over the past months. In July, the company’s average daily trading volume came in at $1.7 billion, a significant change from the $3 billion average daily trading volume in March. Analysts predict that Coinbase shares will drop further and may steady at $42. 

Nitish Vaibhav
Nitish Vaibhavhttp://thetradingbay.com
Nitish Vaibhav is the Founder of the The Trading Bay. A computer science engineer turned an Entrepreneur 5 years ago. He has been in trading since 4 years in Forex and Crypto using his price action strategies. Involved in Content Creation full time for 3 years, Nitish is top rated writer on many content writing websites. He is also a YouTuber in India making videos about Crypto and Forex.

Related Posts

Best Pharma Stocks List – Top 6 Pharma Stocks To Buy Now

The pharmaceutical market is considered one of the most...

Best Crypto Exchange in India – List of Top 5 in 2022

Cryptocurrency enthusiasts in India are more passionate than ever...

What is Options Trading? How Does Options Trading Work?

Options are a leading financial derivate in the investment...

What Is Polygon MATIC? A Detailed Guide to Polygon Crypto & Network

The Polygon MATIC network has swiftly risen to prominence...

What Is Sandbox? Everything You Need To Know About The Sandbox Metaverse

Setting the stage for a new digital age, many...

Blue Chip Stocks Explained: What Are Blue Chip Stocks?

While the investing domain is generally labeled as high-risk-prone...
0
Would love your thoughts, please comment.x
()
x