{"id":68659,"date":"2023-10-04T11:36:17","date_gmt":"2023-10-04T15:36:17","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/coinbase-hurt-by-trading-drop-could-miss-on-revenue-says-analyst\/"},"modified":"2023-10-04T11:36:20","modified_gmt":"2023-10-04T15:36:20","slug":"coinbase-hurt-by-trading-drop-could-miss-on-revenue-says-analyst","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=68659","title":{"rendered":"Coinbase, Hurt by Trading Drop, Could Miss on Revenue, Says Analyst"},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-BAR-0000760682\">\n<div data-layout=\"wrap\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          wrap\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--wrap\n    article__inset--lead\n  \"><\/p>\n<p>        <!-- eventually when we know what this card will be we can change it and leave this one --><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-wrap\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>Crypto traders are scarce, and that\u2019s likely to spell trouble for<br \/>\n        Coinbase<br \/>\n      \u2018s third-quarter report, Mizuho said on Wednesday.<\/p>\n<p>Analysts led by Dan Dolev cut their third-quarter revenue estimates for Coinbase (ticker: COIN) by 7% to $609 million, according to a research note on Wednesday. That\u2019s compared to sales of $682 million expected by analysts broadly, according to FactSet.<\/p>\n<div class=\"paywall\">\n<p>Driving the change was lower-than-expected trading volume on the crypto platform, which is the largest exchange serving U.S. customers. The Mizuho analysts wrote they believed Coinbase had about $72 billion in volume from July through September, rather than the $88 billion they had estimated previously.<\/p>\n<p>\u201cWe expect dwindling volumes\u2026combined with an expected drought in retail trading to meaningfully weigh on 3Q revenue,\u201d the analysts wrote.<\/p>\n<p>Coinbase did not immediately respond to a request for comment. In the past, its executives have said that they\u2019re trying to diversify their business to other parts of the crypto ecosystem so that revenue depend less on trading activity.<\/p>\n<p>Evaporating volumes aren\u2019t unique to Coinbase but have plagued crypto-trading platforms throughout 2023, even as the prices of Bitcoin and other tokens stage a recovery. This year, Bitcoin has risen 66% to about $27,500.<\/p>\n<p>Coinbase stock has benefited from the price resurgence, more than doubling this year to about $72.50.<\/p>\n<p>The Mizuho analysts maintained an Underperform rating on shares with a $27 price target.<\/p>\n<p>One of the platform\u2019s issues is a continued regulatory crackdown on crypto. The Securities and Exchange Commission in June sued Coinbase, accusing it of operating as an unregistered securities exchange, a charge the company denies.<\/p>\n<p>But apart from that, Coinbase has been a casualty of diminished interest from retail investors. Token prices, while up for the year, have stagnated in a range for the last several months. Crypto-market makers have pulled back in part because of regulatory issues, leading to worse spreads and prices for retail traders.<\/p>\n<p>\u201cWhen volatility is low, like we see today, people just sit and hold,\u201d said Coinbase Chief Financial Officer Alesia Haas at a conference last month.<\/p>\n<p>In the long term, Haas and other Coinbase executives say they\u2019re hoping to make more money from parts of the crypto industry that don\u2019t depend on trading. The firm, for example, has tried to grow its staking business, which lets investors earn a yield from posting their tokens to various blockchains. They also have made more money this year from their partnership on the USDC stablecoin, which holds reserves in U.S. Treasuries and other assets that throw off millions in interest income.<\/p>\n<p>But in the short-term, Coinbase\u2019s fate is closely tied to retail trader interest. For now, it\u2019s just not there.<\/p>\n<p>Write to Joe Light at joe.light@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/articles\/coinbase-stock-revenue-trading-8a67e6f4?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto traders are scarce, and that\u2019s likely to spell trouble for Coinbase \u2018s third-quarter report, Mizuho said on Wednesday. Analysts led by Dan Dolev cut their third-quarter revenue estimates for Coinbase (ticker: COIN) by 7% to $609 million, according to a research note on Wednesday. That\u2019s compared to sales of $682 million expected by analysts [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":68660,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-68659","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Coinbase, Hurt by Trading Drop, Could Miss on Revenue, Says Analyst | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Crypto traders are scarce, and that\u2019s likely to spell trouble for Coinbase \u2018s third-quarter report, Mizuho said on Wednesday. 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