Coinbase's Outlook for the Rest of 2022 Is not Looking Good -- Is It Time to Abandon the Stock?
Given that we are in the midst of a crypto winter, I don't think investors had high hopes coming into Coinbase's (NASDAQ: COIN) second-quarter earnings report. But actual results came in even worse than anticipated. Coinbase reported a loss of $4.68 per share on net revenue of $803 million during the quarter, along with weak guidance for the rest of the year. Despite a recent rally, Coinbase's stock is still down more than 63% this year. Is it time to abandon the stock?
Net revenue and earnings for Coinbase came in at the lowest levels seen in five quarters. Monthly transacting users (MTUs) on the platform in Q2 were about 9 million, which, while up slightly on a year-over-year basis, have fallen in a big way in the first six months of the year. Trading volume on the platform of $217 billion in Q2 is down 53% from 2021's Q2, and assets on the platform fell by nearly 47% year over year.
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Source Fool.com
