Coinbase stock skyrockets day before earnings report
By Daniel Tyson
17:59, 9 August 2021
Coinbase is experiencing a good day on Wall Street where its share price sees major action in midday trading Monday.
Some analysts believe the US Senate’s inability to pass amendments taxing cryptocurrency sent Coinbase and other platforms stock prices higher Monday.
The cryptocurrency trading platform jumped nearly $19 a share before 1 pm Eastern to $277 per share. Coinbase closed at $258.23 last Friday, then climbed 3% to $268 in Monday’s pre-market trading session.
Commentary
Blue Line Capital founder and president Bill Baruch told CNBC, "I think their user growth is going to exceed verified users of 60 million, and I think that's going to be sort of a benchmark that they're going to continue to feed on.
“Trading activity is where they get paid as well. I think that's going to pick up," he said, adding this will happen even if major crypto assets such as bitcoin or ethereum struggle.
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Q2 report Tuesday
That’s good news for Coinbase’s Q2 earnings report, scheduled for Tuesday afternoon. The Street’s forecast is for income of $1.83bn for the quarter.
"There's a good trend line support it's coming off of and it's broken out of a wedge of resistance," Baruch said. "I think this thing can go to 290-300 and I think earnings should be positive and the guidance should be good."
In a letter to shareholders, the company said revenue for Q2 2021 may have been increased by Coinbase deciding to list dogecoin in June. The decision to list it was because competitors are, “supporting certain crypto assets that are experiencing large trading volume,” and which are proving to be a headwind, according to the letter.