Early reports show that Coinbase Global Inc. has beaten its earnings expectations. While this is a positive development, Coinbase shares in the After Hours session are in nosediving.
Coinbase Performance and Core Triggers
Per the Bloomberg’s report, the first quarter revenue for the company comes in at $1.58 billion. This figure is notably better than the $1.32 billion that analysts were projecting before the earnings release.Â
Per the report, the company said its net income comes in at $1.17 billion or $4.40 per share. This is also a significant boost as the trading outfit recorded a loss of $79 million or 39 cents per share in the year-ago period.
Coinbase positions itself at the heart of the crypto revolution with trends in the market impacting its performance. The company is the first crypto exchange to go public in the US in 2021. The $79 million loss in Q1 2023 comes amid the market’s reaction to the FTX bankruptcy at the time.Â
This first quarter has come with many intriguing trends that revived investor’s optimism. Spot Bitcoin ETF products were approved by the United States Securities and Exchange Commission (SEC) in January. This product gave Coinbase a hedge as it serves as the custodian for many of the issuers including BlackRock.
Stock ReactionÂ
In contrast to the impressive earnings, traditional investors are somewhat bearish on the company’s shares. In After Hours trading, each COIN is trading for $221.83, down by 3.07% as over $7 has been erased from the stock.
It remains unclear why traditional finance investors are dumping the stock, however, Coinbase remains in a solid position for growth. Coinbase has continued to fight competition from mainstream players like Robinhood and Block Inc.
Recently, the publicly traded firm announced it has integrated the Bitcoin Lightning Network to drive user experience. This marks a major milestone for the firm as it looks to contribute to the evolution and adoption of Bitcoin.
