Coinbase May Extend Losses As Q1 Earnings Report Looms, Wall Street Analysts Are Bearish

TradingKey – Coinbase (COIN) prepares to report earnings amid widespread pessimism, with clear technical indicators pointing to continued downside risk.

Coinbase (COIN), the world’s second-largest cryptocurrency exchange, is set to report its Q1 earnings after markets close on Thursday. At the moment, market sentiment remains bearish due to sluggish crypto performance during the 1st quarter, which likely hurt the company’s revenue and profitability.  

According to FactSet data, analyst estimates for Coinbase’s key metrics have declined significantly from Q4 of 2023:  

- Revenue: to drop from $2.27B to $2.1B  

- EPS: to fall from $2.26 to $1.93  

- Trading Volume: to shrink from $439B to $403.8B  

Wall Street firms have also slashed their estimates for Coinbase:  

- Oppenheimer cuts its trading volume forecast from $440B to $380B  

- JPMorgan lowers its EPS estimate to $1.59  

- Barclays expects retail trading volume at just $69B, well below the previous consensus of $79.8B  

- Compass Point predicts transaction revenue of $1.24B, 7% below expectations  

Year-to-date, Coinbase shares have fallen over 20%, while Bitcoin (BTC) has gained more than 4%. Analysts warn that weak earnings could pressurise the stock downward $140, though a positive surprise may reverse the current downtrend.  

Coinbase stock price chart, source: TradingView.