As Coinbase Prepares To Report Results, Here’s What’s Really Driving The Share Price

As Coinbase Prepares To Report Results, Here’s What’s Really Driving The Share Price
Andrew Rummer

over 2 years ago1 min

As Coinbase prepares to report its latest financial results after the close of New York trading on Tuesday, investors seeking to understand where the stock will go next might be better off tracking the price of bitcoin than the path of the crypto exchange’s profits.

The chart’s top panel shows how Coinbase shares (in blue) have moved in almost perfect sync with the price of bitcoin (in pink) since the company’s April market debut. By contrast, the lower panel shows how little correlation there’s been between the shares and analysts’ profit estimates for the company (in green).

Ahead of the release, analyst estimates collected by Bloomberg suggest Coinbase will report second-quarter revenue of $1.9 billion, generated from trading volume of $377 billion. That will result in pre-share profit of $2.44. 

Those Wall Street analysts aren’t nearly so optimistic when it comes to Coinbase’s forecasts for the third quarter, however. They think trading volume will drop to $280 billion, mirroring the decline in crypto prices since April. That will cut the broker’s revenue to $1.3 billion and trim profit to $1.42 per share. 

Coinbase shareholders wanting to listen to the post-earnings conference call can register here. And you can submit questions to management here

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