In This Article:
Coinbase Global (COIN) shares react to the crypto trading platform's fourth quarter earnings results that topped estimates, posting revenue of $2.27 billion (against expectations for $1.87 billion) and adjusted earnings per share of $4.68 (against expectations for $2.27).
Julie Hyman and Josh Lipton review Coinbase's earnings release, including the cryptocurrency platform's subscription and services revenue.
Initially falling in extended hours, Coinbase's stock has since moved into positive territory at the time of this video's posting.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
This post was written by Luke Carberry Mogan.
Got to get some earnings now. We're going to start with Coinbase here. Total revenue at the company $2.27 billion. That is ahead of estimates of $1.87 billion. Earnings per share also well above what analysts had been anticipating and trading volume at $439 billion ahead of estimates here. Uh the shares are falling here. I'm trying to dig in and see what exactly is going on, Josh. I don't know if you've seen the
I wonder how much could be. I mean this stock has been on such a move as well. I mean, it was up more than 100% for the past 12 months heading into this print. It was up about 50% just from the election which was a big part of this story, right? And a lot of investors had moved in here hard because they had really seen Coinbase as a winner with Trump's win as a winner of having a crypto ally in in the White House.
I'm looking at the company's outlook here just to run through some of what they're saying. Um they said first quarter subscription and services revenue will be $7 $685 to $765 million. Not sure what the specific estimates were around that metric. First quarter transaction expenses will be in the mid to high teens as a percentage of net revenue here. Um and also the company talked about some of their expenses including here uh increasing here, I should say. So maybe that's weighing on things as well or or kind of to your point after the high flying, maybe an excuse for a little bit of selling here, but we're going to continue to dig in. I mean, Coinbase has been one of the most visible and vocal lobbyists for crypto policy to change in DC.
They've gotten pretty much everything they wanted. Now, I guess it's a question of how do they put that to work? How do they take advantage of that? What changes for them on a material basis based on any kind of changes that are happening in Washington.
What's also interesting with with that that point though, Julie, is that if you have this sort of friendlier regulatory backdrop and you have allies in the White House, you see how it's good for Coinbase, but did it also mean, okay, the competitive landscape maybe gets more intense.
Maybe.
