Coinbase Stock Down 12% prompting investors to flee
Coinbase Global Inc reported a loss on Tuesday, missing revenue projections for the first quarter as market volatility dampened offer increased for risk assets such as cryptocurrency trading.
Coinbase’s stock fell 12.7 percent to $63.71 in trading today after the crypto exchange operator announced a dip in trade volumes and predicted an even bigger loss in the latest quarter owing to lower crypto asset values.
Cryptos have plummeted in value as high-risk investments. Bitcoin is currently down 56 percent from its November peak after falling for the sixth day in a row on Tuesday. It has lost a third of its worth thus far, and Ethereum is below 37% in 2022. Sales of nonfungible tokens have plateaued.
“Nasdaq is down, Bitcoin is down. And that has led to less and less dollars being put into crypto.”
-Alesia Haas, Coinbase’s Chief Financial Officer
Haas feels Coinbase is in a great position going ahead as it investments in its growth, particularly branching into other services including nonfungible tokens, or NFTs, despite lower-than-expected trading volumes. On Coinbase’s earnings call, Emilie Choi, president and chief operating officer (COO), stated that the company invests substantially in regulation.
Since late March, the company has dropped more than 70% of its value, as a larger decline in IT companies and the worth of cryptocurrency has struck Coinbase particularly hard. On Monday, the most prominent cryptocurrency, Bitcoin, momentarily fell underneath the significant price level of $30,000, and is fallen and over 30% this year.
Revenue plummeted 27% year over year, and the company posted a $430 million net loss during first quarter. Coinbase, on the other hand, does not appear to be concerned as to its protracted prospects. Due to the volatility character of crypto price movements, the business reiterated a previous argument, urging investors that their stock must be considered a long-term asset.
The dramatic drop in cryptocurrency prices isn’t altogether surprising. However, many in the bitcoin business believe that this sort of thing would happen because of the cryptocurrency market’s growth and embrace by Wall Street. Several proponents of bitcoin have commended it as a hedge against inflation. That will have to wait and see.
On the business’s call with investors, Coinbase CFO Alesia Haas has said that the company might have expanded less conservatively to concentrate on profitability, but rather chose to invest in expansion and broadening product lines. Trading volumes declined to $309 billion again for quarter ended March from $335 billion the previous year.
Retail trading volumes fell 38% to $74 billion, while large trading volumes increased 9% to $235 billion. For the three months ended March, massive reduction due to ordinary stockholders was $429.7 million, or $1.98 per share, compared to net profit of $387.7 million, or $3.05 per share, a year ago. Since its initial offering last year, Coinbase shares have lost 71% of their value.
Large-cap tech stocks have also been hurt by this year’s sell-off. Netflix Inc., Meta Platforms Inc., the parent company of Facebook, and Amazon.com Inc. all are down nearly 35% this year. For the time being, investors are waiting for Wednesday’s inflation report. If the study indicates that prices has peaked, analysts believe it will have an impact on the Fed’s rapid hike schedule.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Jai Hamid
CoinCu News
Author
News, Blockchain
Coinbase Stock Down 12% prompting investors to flee
Coinbase Stock Down 12% prompting investors to flee
Coinbase Global Inc reported a loss on Tuesday, missing revenue projections for the first quarter as market volatility dampened offer increased for risk assets such as cryptocurrency trading.
Coinbase’s stock fell 12.7 percent to $63.71 in trading today after the crypto exchange operator announced a dip in trade volumes and predicted an even bigger loss in the latest quarter owing to lower crypto asset values.
Cryptos have plummeted in value as high-risk investments. Bitcoin is currently down 56 percent from its November peak after falling for the sixth day in a row on Tuesday. It has lost a third of its worth thus far, and Ethereum is below 37% in 2022. Sales of nonfungible tokens have plateaued.
“Nasdaq is down, Bitcoin is down. And that has led to less and less dollars being put into crypto.”
-Alesia Haas, Coinbase’s Chief Financial Officer
Haas feels Coinbase is in a great position going ahead as it investments in its growth, particularly branching into other services including nonfungible tokens, or NFTs, despite lower-than-expected trading volumes. On Coinbase’s earnings call, Emilie Choi, president and chief operating officer (COO), stated that the company invests substantially in regulation.
Since late March, the company has dropped more than 70% of its value, as a larger decline in IT companies and the worth of cryptocurrency has struck Coinbase particularly hard. On Monday, the most prominent cryptocurrency, Bitcoin, momentarily fell underneath the significant price level of $30,000, and is fallen and over 30% this year.
Revenue plummeted 27% year over year, and the company posted a $430 million net loss during first quarter. Coinbase, on the other hand, does not appear to be concerned as to its protracted prospects. Due to the volatility character of crypto price movements, the business reiterated a previous argument, urging investors that their stock must be considered a long-term asset.
The dramatic drop in cryptocurrency prices isn’t altogether surprising. However, many in the bitcoin business believe that this sort of thing would happen because of the cryptocurrency market’s growth and embrace by Wall Street. Several proponents of bitcoin have commended it as a hedge against inflation. That will have to wait and see.
On the business’s call with investors, Coinbase CFO Alesia Haas has said that the company might have expanded less conservatively to concentrate on profitability, but rather chose to invest in expansion and broadening product lines. Trading volumes declined to $309 billion again for quarter ended March from $335 billion the previous year.
Retail trading volumes fell 38% to $74 billion, while large trading volumes increased 9% to $235 billion. For the three months ended March, massive reduction due to ordinary stockholders was $429.7 million, or $1.98 per share, compared to net profit of $387.7 million, or $3.05 per share, a year ago. Since its initial offering last year, Coinbase shares have lost 71% of their value.
Large-cap tech stocks have also been hurt by this year’s sell-off. Netflix Inc., Meta Platforms Inc., the parent company of Facebook, and Amazon.com Inc. all are down nearly 35% this year. For the time being, investors are waiting for Wednesday’s inflation report. If the study indicates that prices has peaked, analysts believe it will have an impact on the Fed’s rapid hike schedule.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Jai Hamid
CoinCu News
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