Coinbase (COIN) falls short on Q3 revenue, but profits beat estimates

November 10, 2021 11:49 AM AEDT

Be the First to Comment

Sanjeeb Baruah

Author

Sanjeeb Baruah - Financial Journalist
369 Posts
Sanjeeb is a senior journalist who has been in the media for nearly two decades. He wrote on various topics, from politics, international relations, business to wildlife. At Kalkine, he writes on stock markets, companies, equities, and IPOs, etc....
Follow

Coinbase (COIN) falls short on Q3 revenue, but profits beat estimates — Image source: Nadezda Murmakova,Shutterstock

Highlights

Coinbase’s trading volume fell by nearly 30% to US$327 billion in the quarter on a sequential basis from US$462 billion in the prior quarter.

The company’s net income was US$405.34 million, or US$1.62 per share.

Its total revenue fell to US$1.31 billion in the quarter from US$2.23 billion in the previous quarter.

Crypto trading platform Coinbase Global, Inc. (NASDAQ: COIN) on Tuesday reported a third-quarter net income of US$405.34 million, or US$1.62 per share, topping Wall Street’s estimates.

The stock nosedived by 10.29% to US$320.60 in after-hours trading at 7:23 pm ET.

Coinbase’s trading volume fell by nearly 30% to US$327 billion in the quarter on a sequential basis from US$462 billion in the prior quarter due to declining crypto prices and lower volatility.

Its total revenue fell to US$1.31 billion in the quarter from US$2.23 billion in the previous quarter.

The company’s net income was US$405.34 million, or US$1.62 per share, more than analysts’ expectations of US$1.57 per share, according to Refinitiv data.

Also Read: Will Ethereum, Solana, Polkadot rally continue after all-time highs?

Source: Pixabay

Also Read: Are these nine penny stocks worth the penny?

Stock Update

The stock traded at US$363.00, an increase of 2.57% from its previous close in the premarket session at 7:53 am ET on Tuesday. The stock rose more than 23% YTD.

Its 52-week highest and lowest prices were US$429.54 and US$208.00, respectively. In addition, its forward P/E one-year ratio is 25.43.

Coinbase Global’s current market cap is about US$92.69 billion. Coinbase went public through a direct listing on Nasdaq in April 2021. At the time, CEO Brian Armstrong said: Coinbase aims to promote crypto assets as an investment vehicle and help build a new financial system.

Bottomline

The current global crypto market cap is about US$2.9 trillion. It had briefly crossed the US$3 trillion mark on Monday as altcoins surged to record highs, boosted by a positive crypto market outlook. Since its inception in 2012, Coinbase has come a long way in the crypto market. Besides offering a platform for crypto trading, it has been instrumental in popularising digital assets. However, investors must evaluate the assets and the overall market carefully before investing in cryptos.