Coinbase (COIN) Earnings Release Analysis 03 Aug 2023 Post Market
$Coinbase Global, Inc.(COIN)$ is scheduled to release its Q2 2023 earnings report on 03 Aug 2023 after hours.
There have been news of SEC suing Coinbase and this has caused the dip in its share price. But we need to be aware of the sequence of events before that actually happen.
These are 2 events that I would take note when I look at the earnings report on 03 Aug 2023 after hours.
Before suing the crypto exchange Coinbase, the U.S. Securities and Exchange Commission (SEC) reportedly requested Coinbase to halt trading in all cryptocurrencies except Bitcoin (BTC),
Coinbase CEO Brian Armstrong has confirmed that the crypto exchange is “looking into” adding the Bitcoin Lighting network in its quest to advance crypto payments adoption worldwide.
If Coinbase is to shift its focus onto Bitcoin on its platform and also to add Bitcoin Lighting network. Then Coinbase would be more than a crypto trading platform.
It could be a player on the crypto payment space.
In this article, I would be looking at the fundamental data and also the technical analysis on how Coinbase would be trading before and after the earnings report.
How I would think if Coinbase could beat the EPS estimate.
Coinbase (COIN) Earnings Data
I would expect Coinbase to beat the EPS forecast because if we go back to Q2 2023, Bitcoin did have some good months.
This would have boost the transaction figures for Coinbase.
Coinbase (COIN) Earnings History
Coinbase is not profitable yet but they have been beating the EPS estimate for the last 2 quarters.
If we look at how Bitcoin have been trading in Q2 2023, it could benefit Coinbase in its revenue and earnings.
I will be watching closely on the number of new accounts and transactions on Coinbase.
Coinbase (COIN) Year-To-Date Earnings
Coinbase have given more than 100% YTD growth. As adoption of Bitcoin is getting more and more common, I would believe that Coinbase have a good chance to be the platform to goto.
With the new Bitcoin Lighting for crypto payment, this could further enhance Coinbase standings as a crypto platform and crypto key player.
Coinbase (COIN) Financial Overview
I think what would be interesting would be the number of Bitcoin holdings that Coinbase held when they report their earnings.
This would give us an idea of how their businesses have grow, because there is loans available to customers in term of cryptos.
Coinbase make money from fees.
Coinbase (COIN) Sentiment Analysis
It is understandable that investors are negative on Coinbase because of the case with SEC suing.
There might be more restrictions that would be imposed on Coinbase with SEC case, I think investors would adopt a wait and see while some would be selling their holdings.
Technical Analysis – Simple Moving Averages (SMA)
Coinbase is in a bull trend though they went through a brief bear trend.
Something we need to take note is Coinbase price would be trending downwards due to these negative of SEC lawsuit.
I will be watching how Coinbase would be trading before its earnings, hopefully the positive on Bitcoin lighting onboarding would help its share price.
Technical Analysis – Relative Strength Index (RSI)
RSI momentum is good after entering from Overbought, but there might be some selloffs given that SEC lawsuit might have more restrictions on Coinbase.
I would check the price and volume (especially the SELL volume). This could push price to a bear trend.
Technical Analysis – Average Directional Index (ADX)
ADX is between 20 and 40 and very close to cross over 40, it is a developing going on strong trend.
+DI is above -DI suggest a bullish uptrend. I am expecting a positive earnings would move Coinbase above 40 indicating a Strong trend.
Technical Analysis – Parabolic SAR (SAR)
Coinbase seem to be in bearish reversal near end of July. It has been trading in bearish downwards movement.
We might not see any potential bullish reversal in the near term unless we see a strong earnings report.
Summary
From what I have shared and observed, I would expect Coinbase to have a slightly better than EPS estimate. They should be still unprofitable.
What I would be looking forward is how Coinbase would be navigating its business model if the other cryptos could not be traded on its platform except Bitcoin.
So maybe Bitcoin lighting onboarding and becoming a crypto payment provider might pave a new way for Coinbase.
I will be monitoring the price action of Coinbase on 03 Aug trading as I expect some selling.
Appreciate if you could share your thoughts in the comment section whether you think Coinbase would report a better than estimate EPS, and this positive earnings would help the stock price to have a significant surge?
@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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Paypal stable coin will elevate the status of crypto to new popularity
There is a future here, but how long will this take? My confidence is shrinking
I think Coinbase's revenue declined by 35% year-over-year to $1.17 billion in the second quarter of 2023. This was driven by a decline in the number of active users and a decrease in the average transaction size. $Coinbase Global, Inc.(COIN)$
Coinbase chief (on CNBC right now) can't answer what underlying value crypto has. Funny to watch all these guys like Armstrong, Saylor, etc. dance around questions about how to use the fake tokens.
stock is trending lower, lower highs and lower lows daily might catch some support around 83. it was past resistance around there. If it can't hold there, then it should pull back to 70s
There is a global future in cryptocurrency. I'm in for the long haul. Why should the US dollar dominate? There is no confidence in that thinking on a global basis for universal trade.
Bitcoin, currently hovering near $30,000, is almost double what it was at the start of 2023.
If 50 DMA of $76.3 does not hold, COIN will go to 200 DMA of $61.20
Coinbase primarily exists for the executives to fleece the retail investing public (both their crypto customers and the shareholders).
Coinbase says they "expect to win" their legal battle against the SEC. Wishing them all the best!
PayPal is w much better crypto play, most trustworthy fintech I have ever used. Coinbase is shady
The company's revenue declined, its net loss widened, and its active user base shrank.
COIN Base is being kicked out of Calif too and that says alot
Next week, starting monday, bull mode will resume ;)
Coinbase's earnings report was disappointing.
Not confident think it will go down