Why Coinbase Is Making a Comeback Today
This week has been a volatile one for investors in Coinbase (NASDAQ: COIN).
Shares of Coinbase were bid up ahead of earnings on Monday and Tuesday, in anticipation of some strong numbers. The cryptocurrency market appeared to have priced in some serious outperformance this past quarter. Indeed, given the rise of various meme tokens and alt coins in recent months, such expectations appear to have been rational.
However, shares of Coinbase stock declined substantially on Wednesday following earnings, which were reported after market close on Tuesday. The company reported weaker-than-expected revenue growth, a key factor growth investors consider with a company like Coinbase. The cryptocurrency exchange brought in $1.31 billion in revenue, versus consensus estimates of $1.57 billion. Additionally, the company's margins appear to be under pressure from competitors offering lower trading fees in the cryptocurrency space.
Source Fool.com
