Is Coinbase stock price too cheap before earnings?
Coinbase (NASDAQ:COIN) stock price selling continued as the broader sell-off in stocks and cryptocurrencies continued. The stock fell to an all-time low of $84, about 80% below its all-time high, bringing its total market capitalization to about $18 billion. At its peak, the company had a market value of over $70 billion.
Sale of cryptocurrency
Coinbase is a leading cryptocurrency with over 90 million customers worldwide. The company manages billions of dollars worth of cryptocurrencies every day.
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Coinbase, like every other company in the industry, makes more money when the cryptocurrency industry is doing well. When digital coins do well, it usually leads to more users as people take advantage of higher prices.
But cryptocurrencies are not doing well. Bitcoin fell to around $31,000, while the total market capitalization of all digital coins fell to around $1.56 trillion. At their peak, the total value of cryptocurrencies exceeded $3 trillion.
Analysts now expect the number of active users on the platform to crash. Therefore, analysts will pay close attention to trading volume and active users when the company releases its quarterly results on Tuesday.
In its latest quarterly results, Coinbase said its platform had over 11.4 million users. This was significantly higher than a year ago.
Analysts expect Coinbase’s revenue to have fallen to $1.48 billion in the first quarter after hitting $2.5 billion in the previous quarter. They also expect EPS to fall to $0.86, which will represent a -71.8% decline year over year.
The other key thing to watch will be the company’s new non-fungible token (NFT) market. Additionally, investors will want to hear about the company’s acquisition of 2TM and BtcTurk.
Coinbase Share Price Prediction
The daily chart shows that Coinbase’s stock price has been on a strong downtrend over the past few months. The selling continued when the stock broke below the important support level at $209, which was the lowest level in May last year. It also broke below the key level at $150, which was the lowest point on March 16.
The stock fell below the 25 and 50 day moving averages. Therefore, regardless of the company’s results, the stock is likely to continue falling to around $50.
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*Investment in crypto-assets is not regulated in some EU countries and the UK. No consumer protection. Your capital is in danger.