Coinbase Stock Mirrors Crypto Market Crash Ahead Earnings, What To Expect?

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As a researcher with a background in finance and experience following the cryptocurrency market, I believe that the upcoming Coinbase Q1 FY24 earnings call is of significant importance for investors and market observers. The recent decline in Coinbase stock price in the pre-market trading session, amidst the broader crypto market crash, has added an extra layer of intrigue to the event.

In the early trading hours of Wednesday, the Coinbase (COIN) stock took a nosedive due to the recent crypto market collapse. This downturn follows closely after the announcement that Coinbase will release its Q1 FY2024 earnings report on Thursday, May 2, 2024, following the market’s closure. Consequently, let us examine the predictions from financial analysts regarding the upcoming Coinbase earnings call.

What To Expect From Coinbase Q1 Earnings?

Based on Zacks Investment Research analysis, the projected earnings per share (EPS) for Coinbase in Q1 is estimated to be $0.89. This figure is a 14.5% decrease from the previous quarter’s EPS of $1.04. Yet, some online commentators have raised doubts about this low estimate due to the significant increase in trading volume at Coinbase during Q1, fueled by the ongoing crypto market boom.

As an analyst, I’ve noticed that the projected EPS (Earnings Per Share) for this company represents a substantial jump of 493.33% compared to the $0.15 per share figure from the previous year. On the other hand, Zacks analysts anticipate the company to generate a revenue of $1.20 billion in the current year, reflecting a growth of approximately 55.50% over the same period last year.

As a crypto investor, I’m excited to share that analysts expect Coinbase’s earnings per share (EPS) for the current quarter to surpass their initial estimates by an impressive 36% or more. This translates to a projected EPS of around $1.22 per share. Additionally, Wall Street analysts have revised their Q1 GAAP EPS projections for Coinbase in 2024 from $1.86 to $2.41, signaling a growing optimism towards the cryptocurrency exchange platform.

As an analyst, I’d interpret the latest profitability upgrade for the company as a positive development. However, I hold the conviction that Q1 represented the highest profitability level for the business this year. Moreover, I anticipate a decline in Coinbase earnings as the year unfolds. In contrast, Wall Street analysts project that revenue growth will persistently increase, with a projected 54% surge YoY in 2024.

In the year 2024, Coinbase’s earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to experience a significant jump of around 120% compared to the previous year. Nevertheless, there is a potential for a 10% decrease in EBITDA in the upcoming year.

As an analyst, I’ve delved deeper into the financial projections of Coinbase’s net income growth. Notably, my analysis uncovers a significant perspective when scrutinizing these forecasts. Wall Street experts anticipate a remarkable 300% year-over-year surge in net income for Coinbase by 2024. However, an opposing view suggests a 36% decline in 2025. This discrepancy might indicate the approaching end of the current bull market.

COIN Stock Crash

On May 1, 2023, the price of Coinbase stock dipped below the $200 threshold during the early trading hours, reaching a level of $198.76. This represented a 2.54% decrease in value compared to the previous day’s closing price. In the days leading up to this, the COIN stock had experienced a significant decline, dropping by 6.52%, and ending its trading session on Tuesday at $203.93 with an market capitalization of $50.05 billion.

Despite the positive outlook from Zacks Investment Research analysts who advocate a “Strong Buy” position for Coinbase’s stock (COIN), investor confidence may be shaken as the stock has underperformed in the previous month, dropping approximately 20% in April. This downturn could be attributed to the persistent crypto market slump.

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2024-05-01 14:47