Coinbase Shares Soar After Earnings Exceed Expectations with Increased Transaction Activity—Critical Price Threshold to Monitor
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Essential Highlights
- Coinbase’s stock experienced a significant uptick in value during the post-market trading session when the cryptocurrency exchange announced Q4 financial results that greatly exceeded analysts’ projections.
- In anticipation of potential spot Bitcoin ETF approvals and promising macroeconomic projections for 2024, Coinbase reported a strong increase in its transaction revenue for the quarter.
- The price of Coinbase shares might face a barrier at the upper boundary of a rising price channel around the $210 level.
Coinbase Global, Inc.
Credit: TradingView.com
Shares of Coinbase (COIN) surged by over 14% after hours on Thursday following the announcement by the United States’ premier cryptocurrency exchange platform of earnings and revenues for the quarter that far surpassed the market consensus. This climb is attributed to a rise in transaction activity.
Posting an adjusted per-share profit of $1.04 for the final quarter, compared to a loss of $2.46 per share the previous year, Coinbase outperformed analyst predictions that foresaw minimal earnings. Moreover, a near $954 million revenue, marking a 41% quarter-over-quarter increase, also exceeded the anticipated $826 million forecast by analysts.
The reported period benefited from a 64% year-over-year swell in transaction revenue, driven by the anticipated approval of spot Bitcoin ETFs and prospects of an improved economy in 2024. Concurrently, Coinbase predicted that their subscription and service revenue for the first quarter would surpass street estimates.
Coinbase addressed concerns about dwindling market share due to growing competition, pointing to its performance amidst fee pressures and the reported $154 billion in trading volume for the quarter, surpassing analyst projections.
Throughout a recent recovery trend, COIN shares have remained within a bullish ascending channel, as buyers defended a retraction to the 50-day moving average. The share price ascent following the earnings announcement could challenge the price channel’s upper trendline, which investors may view as a profit-taking zone.
COIN shares closed at $189.29 in after market trading on Thursday, reflecting a 14.3% gain.
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As of the publication date of this article, the author holds no positions in any of the aforementioned securities.
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