Coinbase Global's Challenging Q3 Preview: Analyst Expects Trading Volume To Slump 49% Y/Y
Portfolio Pulse from Nabaparna Bhattacharya
Oppenheimer analyst Owen Lau expects Coinbase Global, Inc. (NASDAQ:COIN) to have a challenging Q3, with trading volume predicted to decline 49% Y/Y and 16% Q/Q to $77 billion. The stock is down ~38% from mid-July due to the delayed decision of spot Bitcoin ETF applications and weak trading volume. However, a favorable ruling in Coinbase's lawsuit and potential approval of spot Bitcoin ETF could trigger a short squeeze. Lau slightly raised 3Q revenue and adjusted EBITDA estimates to $673 million and $82 million, respectively.
October 12, 2023 | 6:00 pm
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NEGATIVE IMPACT
Coinbase is expected to face a challenging Q3 with a significant decline in trading volume. However, potential positive developments could trigger a short squeeze.
The analyst's prediction of a significant decline in trading volume for Coinbase in Q3, along with the stock's recent downward trend, suggests a negative short-term impact. However, potential positive developments such as a favorable lawsuit ruling and Bitcoin ETF approval could mitigate this impact.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100