Coinbase Earnings Crushed Estimates The Stock Isn’t Falling Anymore

Investors leading the raise included Thiel’s Thiel Capital and Founders Fund, as well as hedge fund managers Alan Howard and Louis Bacon. The cryptocurrency is off of highs this year, amid a crackdown in China. Funds and accounts managed by BlackRock and financial services firm Galaxy Digital, founded by Mike Novogartz, were among those that participated in the PIPE.

Coinbase trading volumes also surged 38 percent to $462 billion during the second quarter. Robinhood — Shares of the newly public online brokerage popped 3.3% Monday. Robinhood’s stock has been volatile since its IPO, and it has been getting major attention from the retail investor crowd. Crypto stocks are set to be back in focus once trading resumes after the long Labor Day weekend. The crypto king Bitcoin has finally broken back above $50,000 and held above there. El Salvador becomes the first country to officially have Bitcoin as its legal tender, so Bitcoin will definitely be in the headlines today.

Now that COIN has been public for a week, it meets all the requirements. In the U.S., regulators have remained skeptical about cryptocurrencies. For instance, officials from the Securities Exchange Commission are stating that some cryptocurrency trading exchanges offer illicit, unregistered securities. On the flip side, the regulatory landscape will play a key role in Coinbase prospects. For a business that relies on trading fees, a regulatory crackdown might derail Coinbase’s stock. According to credit services firm Blue Line Capital founder and President Bill Baruch, the earnings will surpass expectations despite the crypto volatility.

Mizuho initiated coverage of Coinbase with a “neutral” rating and price target of $285. Apple, DocuSign, and Google parent Alphabet are among today’s fastest-growing stocks expecting up to 749% Q3 growth. The news came just before the company began an investor event intended to discuss its clinical-development pipeline. From the record highs of more than $63,000 in mid-April, bitcoin (BTC-USD) has shed about 50% (including a trip below the $30,000 level). Major sell-offs have spread to other top cryptos such as dogecoin and ethereum amid fears of regulator crackdowns in the U.S. and China.

If you believe in cryptocurrencies and want to play the theme, Coinbase stock might fit in the bill. Coinbase’s forecast depends on how the cryptocurrency market evolves over the next few years. COIN stock is among the top 25 discussion topics on Reddit group WallStreetBets.

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Whether Coinbase stock investors will profit from it all remains a tossup. Coinbase’s diluted earnings per share of $6.42 also topped Wall Street’s consensus forecast for EPS of $2.82. There is a lot of interest in everything cryptocurrency-related right now, thanks to Bitcoin’s rising value. And Coinbase could clearly benefit as Bitcoin, and other digital currencies, become more mainstream.

This sparked panic among investors who were concerned about their shares being diluted. In 2020, transaction fees from trading and storage services accounted for approximately 90% of the company’s revenue. There are others on Wall Street who aren’t so bullish at the moment, including Mizuho analyst Dan Dolev, who expressed concern over the outlook for bitcoin prices in the wake of the recent selloff.

Direct listings differ from initial public offerings , in that companies don’t raise funds by selling newly-created shares to investors. In an interview with Barron’s last week, Gensler noted that the SEC has already taken action against 75 or 80 crypto coins. Asked why the SEC doesn’t make rules for the 1,500 or so other coins now trading, Gensler said that each case is different.

Share-purchase information comes from a subscription to ARK’s daily trading information. For the third quarter, analysts predict adjusted EPS of $1.42 on revenue of $1.33 billion. For the full year the analysts project revenue of $6.17 billion. Delaware-based Coinbase reported its first quarterly results as a public company after the bell Thursday, posting net income for the first three months of 2021 of $771 million, or $3.05 a share, up from $32 million a year ago. Every weekday evening we highlight the consequential market news of the day and explain what’s likely to matter tomorrow.

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ThredUp reported revenue of $60 million, compared to the $56 million analysts surveyed by Refinitiv were expecting. Provide specific products and services to you, such as portfolio management or data aggregation. Coinbase is the largest cryptocurrency exchange in the US, giving it a strong position in an admittedly uncertain industry. If you trade a lot use Binance instead of Coinbase – fees are a lot lower there.

Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content. IBD Videos Get market updates, educational videos, webinars, and stock analysis. Teladoc Health provides on-demand health care services, such as nonemergency doctor’s appointments, online. More doctors and patients are opting for telemedicine due to Covid-19. Teladoc is one of the biggest ARK Invest stocks, with an over-6% portfolio weighting in the ARKK portfolio.

The new stake in Coinbase represents another one of the Ark Invest stocks that offers more exposure to cryptocurrencies. FuboTV — Shares of the streaming company rose 10% following Fubo’s second-quarter results. Minneapolis Federal Reserve president Neel Kashkari took a bearish stance on crypto Tuesday when he said cryptocurrency is mainly fraud, hype, noise and confusion. Jim Cramer expressed an opposing view Wednesday on CNBC’s “Squawk On The Street.” Maintaining independence and editorial freedom is essential to our mission of empowering investor success.

He affirmed his neutral rating on Coinbase on Tuesday, and slashed his price target to $225, which is 6.1% below current levels, from $315. Bullish plans to launch a blockchain-based crypto exchange later this year. Ahead of that launch, the company said Friday that it would run a private pilot program that will allow users to test the exchange in “a simulated market environment.” That pilot will begin in the coming weeks, Bullish said. Nearly 0.30% of Coinbase Global Inc.’s shares belong to company insiders and institutional investors own 28.00% of the company’s shares.