Coinbase Shares Fell Today After Reporting Earnings -- Is It a Buy?

Shares of the large cryptocurrency exchange Coinbase (NASDAQ: COIN) fell roughly 1.5% today, despite an extremely upbeat day in the broader markets in which the Dow Jones Industrial Average finished the day 834 points higher and the Nasdaq Composite rose 1.6%.

Coinbase reported earnings for the fourth quarter of 2021 after the market closed yesterday. While the company's earnings per share of $3.32 and total revenue of nearly $2.5 billion in the quarter beat estimates easily, investors were not pleased with the guidance.

Management said that the company has seen lower volatility and crypto prices thus far in the current quarter. As a result, retail monthly transaction users (MTUs) are expected to decline from the 11.4 million reached at the end of 2021, while trading volume is also expected to decrease from the $547 billion of volume seen in Q4.

Source Fool.com