Coinbase Tumbles 22% After Reporting Disappointing First-Quarter Earnings
May 11, 2022 By MarketDepth
Coinbase Global Inc. (NASDAQ: COIN) tumbled 22% Wednesday morning after reporting disappointing first-quarter earnings on Tuesday afternoon. The hit comes amid the continuous fall in tech stocks overall.
Large Earnings Loss
The cryptocurrency exchange platform reported an earnings loss of USD1.26 per share, compared to the expected earnings of USD0.91 a share. Meanwhile, revenue amounted to USD1.17 Billion, lower than analysts anticipated USD1.48 Billion.
“The first quarter of 2022 continued a trend of both lower crypto asset prices and volatility that began in late 2021. These market conditions directly impacted our Q1 results.”Stated the company’s letter to shareholders.
Nevertheless, the company did highlight its wallet product ventures with non-fungible tokens or NFTs. Coinbase also reminded its shareholders that the stock should be purchased for a long-term hold amid the volatile nature of cryptocurrency price moves.
Focused on Growth
“We believe these market conditions are not permanent and we remain focused on the long-term,” the company wrote in a letter to shareholders accompanying its earnings release. It also said that it’s focusing on the next generation of crypto opportunities beyond trading.
“While we continue to invest and enhance our core investment platform, the application era of crypto is upon us, led by NFTs and decentralized finance, and we are increasingly focusing our efforts on these market opportunities.”