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

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

 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?

 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.

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.

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