Coinbase (COIN, $357.39) misses Q3 earnings expectations
Coinbase Global shares fell on Tuesday, after the company disappointed on third quarter earnings.
The biggest U.S. cryptocurrency exchange earnings for the third quarter came in at $1.62 a share, up from 23 cents a year ago. But they fell short of the $1.77 a share expected by analysts polled by FactSet.
Coinbase reported quarterly revenue of $1.31 billion, in line with analysts’ estimates and more than four times the year-ago quarter’s $315 million.
The company mentioned the volatile nature of its business, and emphasized the importance of long-term investing. “As our year-to-date results have clearly demonstrated, our business is volatile,” the company said. “Coinbase is not a quarter-to-quarter investment, but rather a long-term investment in the growth of the crypto-economy and our ability to serve users through our products and services.”
Regarding the company’s guidance for the fourth quarter, it said that October trends include higher levels of activity among retail traders who have historically traded more on Coinbase during periods of heightened volatility. “We believe that retail monthly transacting users and total trading volume will be higher in Q4 as compared to Q3,” the company stated.
COIN's Stochastic Oscillator ascending into overbought zone
The Stochastic Oscillator for COIN moved into overbought territory on December 06, 2024. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for COIN moved out of overbought territory on November 20, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 22 similar instances where the indicator moved out of overbought territory. In of the 22 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for COIN turned negative on November 26, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 27 similar instances when the indicator turned negative. In of the 27 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where COIN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
COIN broke above its upper Bollinger Band on December 06, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on December 04, 2024. You may want to consider a long position or call options on COIN as a result. In of 63 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
COIN moved above its 50-day moving average on November 01, 2024 date and that indicates a change from a downward trend to an upward trend.
The 50-day moving average for COIN moved above the 200-day moving average on November 26, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where COIN advanced for three days, in of 199 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 120 cases where COIN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. COIN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.728) is normal, around the industry mean (5.702). COIN's P/E Ratio (681.378) is considerably higher than the industry average of (34.442). Projected Growth (PEG Ratio) (1.531) is also within normal values, averaging (2.610). COIN has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.030). P/S Ratio (20.619) is also within normal values, averaging (112.495).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. COIN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock worse than average.
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