The Coinbase (Coin) goes to its first quarter revenue report on the Shaky Ground, with four Wall Street analysts expecting a Miss because retail trade is likely to urgently urgently the profitable Crypto Exchange lines of business.
The company is set to report first-quarter results on Thursday post-market. Analysts make up revenue each part (EPS) falling to $ 1.93 from $ 2.26 In the fourth quarter and income drops to $ 2.1 billion from $ 2.27 billion, according to factset data.
In Year-Earlier first quarterIt reports EPS $ 4.40 and income $ 1.2 billion. Trade volume is expected to reach around $ 403.8 billion marks compared to $ 439 billion in the fourth quarter.
JP Morgan cut off its EPS estimate of $ 1.59, citing a 10% collapse in Coinbase trade volume and a 17% slide in the total crypto market cap in the quarter. Adaptable for crypto asset losses, they see EPS for $ 2.39, supported in part by controlled costs and stable subscription revenue.
Barclays and Compass Point See deeper problems. Barclays have dropped revenue and EBITDA forecasts, saying that the market has cooled sharply since January despite the growth of Stablecoin. It has packed volumes for $ 69 billion, significantly below a street estimate of $ 79.8 billion.
The Compass Point, more bearish, is still, that the stock is —owgraded to sell, projecting revenue of $ 1.24 billion, 7% below the consensus. It argues that Coinbase is losing its retail sharing in decent exchange (DEX) and warning further illness in the second quarter.
Robinhood’s popular trade platform, last week, reported A 13% transaction-based revenue from the fourth quarter while markets are cooled during the first three months of the year.
Stablecoins to save?
An area of optimism: stablecoins.
Coinbase’s revenue from the USDC climbed as the Stablecoin market cap climbed 42% in the quarter, which helps with the bolster subscription income. Barclays estimated that $ 304 million in the first-quarter income related to the USDC, and even those who doubt the compass point recognized that it had helped offset the downfall of income due to the slide in ether’s price.
The Oppenheimer’s Forecast has cut off at $ 380 billion from $ 440 billion, but it is noted that Coinbase has gained a market sharing of US spot trading markets. That is a positive sign, but the one that may not matter if the retail entrepreneurs continue to sit in their hands.
There is also a growing concern about longer competitive pressure. Analysts noted that decentralized exchanges – especially those who operate on faster and cheaper blockchains like Solana’s own base and Coinbase – draw retail users looking to trade a wider range of tokens. While the US market sharing of the Coinbase has increased, its dominance as a centralized, regulated exchange may not be sufficient to dispel this change.
At the forefront, the analysting of analysts that a close long-term rebound in trading can be slow to be materialize, especially to entrepreneurs who often hesitate to re-enter the market until they recover earlier losses.
Coinbase shares dropped 23% year-to-date, trading at $ 198.06, while Bitcoin reached 3.8% from the beginning of the year to $ 97,023.
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