Coinbase Global's Fourth Quarter Results: Will the Crypto Exchange Finally Turn a Profit?

EddieJayonCrypto

 14 Feb 24

tl;dr

Here's what to expect from Coinbase Global's fourth quarter results and the potential for the crypto exchange to post a profit. The price of bitcoin jumped more than 50% in the run-up to the approval of the first U.S. spot bitcoin exchange-traded funds, leading to an anticipated Q/Q increase i...

Here's what to expect from Coinbase Global's fourth quarter results and the potential for the crypto exchange to post a profit.

The price of bitcoin jumped more than 50% in the run-up to the approval of the first U.S. spot bitcoin exchange-traded funds, leading to an anticipated Q/Q increase in trading volume at Coinbase. The company is expected to turn in GAAP EPS of $0.01, compared with -$0.01 in the prior quarter, with revenue projected to be $818.4M, marking their first quarterly profit since Q4 2021. Despite this optimism, there are differing viewpoints on whether Coinbase's performance will measure up to its stellar Q4 2021 numbers, and Coinbase stock gapped up 12.6% as bitcoin resumed its multi-day bull run after a brief slump.

More about Coinbase Global Inc

Key Financial Metrics:

• Market Cap: $33,575,782,000
• Revenue: $2,627,473,000
• Net Income Margin: -3.2%
• Return on Equity: 11.3%
• Earnings Per Share: -0.28
• Price/Earnings Ratio: 88.29
• Dividend Yield: 3.27%
• Beta: 0.081

Stock Performance:

• Coinbase Global Inc. is in the finance services sector and has a market cap of over $33 billion. The company's revenue is over $2.6 billion, with a negative net income margin of -3.2% and a return on equity of 11.3%. The earnings per share is -0.28 and the price/earnings ratio is 88.29, indicating a high valuation relative to earnings. The stock also offers a dividend yield of 3.27% and has a beta of 0.081.

Market Sentiment:

• Given the negative net income margin and high price/earnings ratio, there may be concerns about the company's profitability and valuation. However, the company's presence in the crypto economy and its strong revenue indicate potential for growth. Investors should consider the risks associated with high valuation and the volatility of the crypto market when evaluating this stock.

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