Coinbase stock price in focus ahead of quarterly resultswritten by Bella Palmer
According to SeekingAlpha, the median estimate is that the company made revenue of over $2.3 billion in the second quarter
The Coinbase stock price will be in focus this week as the company publishes its quarterly results and as crypto currencies rebound. The stock ended last week at $258 - 21% higher than the lowest level hit in July.
Coinbase is the second-biggest crypto currency exchange in the world by volume. The biggest one is Binance, the controversial exchange that has been targeted by regulators like the UK’s Financial Conduct Authority (FCA) and Bank of Japan (BoJ).
The company will publish its Q2 results on Tuesday. These will be difficult results considering that crypto currency prices crashed in the quarter. The price of Bitcoin increased to an all-time high and then retreated to below $30,000. At the same time, volume in the industry retreated sharply as investors exited the industry.
Still, analysts expect that the company had a great quarter. According to data compiled by SeekingAlpha, the median estimate is that the company made a revenue of over $2.3 billion in the second quarter. This will be nearly $200 million rise over the first quarter. They also expect that its earnings per share will decline from $3.05 in Q1 to $2.57 in Q2.
Investors will be looking at several things in its quarterly results. First, they will look at the growth of its subscription and services revenue, which made $56 million in Q1. Second, they will look at the company’s user growth now that the prices of most crypto currencies retreated in Q2. Most importantly, they will focus on the company’s guidance for the next quarter.
The Coinbase stock price will also react to the recent jump in crypto currency prices. During the weekend, the price of Bitcoin soared above $45,000 for the first time in two months. Ethereum also climbed to over $3,000.
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