Home Uncategorized The Coinbase stock continues to slide after the earnings report

The Coinbase stock continues to slide after the earnings report

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Coinbase Global Inc.

COINS -12.60%

Tuesday after an hour of work fell when the company reported losses and said its users had shrunk compared to the previous quarter.

Shares fell 15% in late trading after retreating 12% during the regular session. This year it has decreased by more than 70%.

The loss reported by the company was worse than analysts had expected.

Coinbase

COINS -12.60%

posted a net loss of $ 429.7 million, or $ 1.98 per diluted share, with revenue of $ 1.17 billion in the first quarter compared to earnings of $ 387.7 million, or $ 3.05 per share. with revenue of $ 1.8 billion a year earlier.

Analysts had forecast a loss of 1 cent per share on revenue of $ 1.5 billion, according to FactSet.

Most of the exchange’s revenue falls on transaction fees, which declined significantly in the first three months of the year. The number of users of monthly transactions also declined, and Coinbase said in a letter to shareholders that it expects both the number of users and the volume of trades to decline again in the second quarter.

In April 2021, Coinbase became the first major bitcoin-focused company to test public markets in direct list of blockbusters. The stock ended its first trading day at $ 328.28 apiece, giving Coinbase an estimate of $ 85 billion. The company has a market capitalization of approximately $ 16 billion.

Investors are increasingly perceiving financial markets at a turning point, and as a result abandoned some of the most speculative investments. The stock market fell from record highs when the Federal Reserve began to repeal its easy money policy, raising interest rates and expanding its asset portfolio. Central Bank raised interest rates at half a percentage point last week, the biggest hike in two decades that sparked several days of defeat.

The prices of cryptocurrencies, high-risk assets, have fallen sharply. Sales of irreplaceable tokens have flat. Bitcoin is now worth less than 54% of its November high. This year, at the close on Monday, bitcoin fell 33% and Ethereum fell 38%. Investors have pulled billions of dollars out of the crypto market before the market leveled off on Tuesday next to traditional markets.

Other cryptocurrencies have dropped significantly.

Silvergate Capital Corp.

has fallen by 42% this year,

Marathon Digital Holdings Inc.

decreased by 64%

Blockchain Riot Inc.

decreased by 66% and

TeraWulf Inc.,

bitcoin mining company down 80%.

Dion Rabuen of the WSJ explains why Wall Street is now betting big on crypto and what it means for the new asset class and its future. Photocomposite: Elizabeth the Brave

The sharp decline in cryptocurrencies is not entirely unexpected. At the same time, many people in the cryptocurrency industry have argued that this time will be different because of the expansion of the crypto market and its wider spread on Wall Street. Several bitcoin bulls have praised its importance as a hedge of inflation. It remains to be seen.

The the third largest stablecoin, TerraUSD, designed to keep the price at $ 1, fell 69 cents on Monday, sparking a flow of investors who sold their assets. Finance Minister Janet Yellen on Tuesday repeated calls to have Congress allow the regulation of stablecoins after the fall in the price of TerraUSD.

This year’s defeat punished large-cap technology stockstoo.

Netflix Inc.,

Facebook

-father

Meta-platforms Inc.

and

Amazon.com Inc.

this year fell by at least 35%. Meanwhile, the technology-oriented Nasdaq Composite fell 25%.

The mood for incompatible tokens, or NFT, is there also cooledsignaling the widespread promotion of risky rates.

At the moment, investors are waiting for information on consumer price inflation, which should appear on Wednesday. If the report shows that inflation has peaked, analysts say it could potentially affect the Fed’s aggressive training plan.

Write Cory Drybush on corrie.driebusch@wsj.com

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