Why Coinbase Stock Jumped on Friday
Shares of Coinbase Global (NASDAQ: COIN) enjoyed a fine Friday on the market, following the release of surprisingly robust third-quarter results. The cryptocurrency trading exchange's stock surged as much as 13.7% higher in the early morning, backing down to a milder gain of 6.5% by 12:30 p.m. ET.
Coinbase's net revenue fell 53% year over year due to dramatically lower crypto-trading activity, landing at $576 million. The year-ago period's earnings of $1.62 per share swung to a $2.43 net loss per share, also based on diminished interest in cryptocurrency trades. Your average analyst was officially expecting a loss of $2.40 per share on revenue in the neighborhood of $654 million, so the reported figures fell short of expectations across the board.
However, management doubled down on the existing full-year guidance of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of less than $500 million. Investors interpreted this confidence in previously stated goals as a good sign for cryptocurrency trading in the fourth quarter.
Source Fool.com
