Coinbase (COIN) share drops after quarterly earnings release – fr

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Coinbase (COIN) share drops after quarterly earnings release – fr


Shares of Coinbase Global Inc. fluctuated after the market on Thursday after the largest U.S. cryptocurrency exchange reported net income above Wall Street estimates.
Coinbase reported total sales of $ 1.8 billion, in line with its April forecast, but slightly below the $ 1.81 billion expected by analysts polled by Bloomberg. The company’s net income of $ 771 million fell to the middle of the forecast range of $ 730 million to $ 800 million, and exceeded analysts’ expectations of $ 762.6 million.

Coinbase reported a day after Tesla Inc. said it would stop accepting Bitcoin for payment, leading the world’s largest cryptocurrency to crash below $ 50,000. Coinbase CFO Alesia Haas said in an interview that the sharp drop “is just a day away. It is important not to over-index in a single day. “

Coinbase shares first fell above $ 250 after-hours trading, briefly exceeding the benchmark price set by the Nasdaq for its direct listing on April 14. No trade has ever taken place at this price – it started at $ 381 – but it is seen below. as a default for the listing.

“Coinbase’s strong forecast for 2Q21 trading volume – equal to or greater than the $ 335 billion it released in 1Q21 – and its improved 2021 scenarios for users trading monthly were the key takeaways, at our opinion, ”said Mark Palmer, analyst at BTIG. “However, the market appears to have initially focused on modest ‘hiccups’ on consensus estimates, even though the company has hit its pre-announced number (in the case of revenue) or produced results in the pre-announced range (in the case of net income). “

Although Coinbase’s letter to shareholders did not comment on the crash, the company once again stressed that its business “is inherently unpredictable.” He added that “the wind is in our sails right now, and he It’s heard good, ”he added. “But crypto is a volatile young industry and there will come a time when times will be tougher.”

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