Coinbase (COIN.US) stock jumped more than 5% after the largest crypto exchange in the US posted strong quarterly figures. Company earned $6.42 per share, well above analysts’ expectations of $2.32 per share. Revenue of $2.03 billion also topped market projections of $1.821 billion. The trading platform posted a net profit of $1.6 billion in Q2, a significant increase of 4,900% compared to the $32 million recorded in the same period in 2020. Coinbase managed to increase its monthly user base and the value of processed transactions. All the while, the value of the crypto assets that were being traded declined by approximately 20%. Retail traders accounted for $145 billion worth of total volume, while institutional investors represented $317 billion, equating to increases of 20% and 47% compared to Q1 respectively. Company announced that in recent months it has formed partnerships with industry leaders including Elon Musk, PNC Bank, SpaceX, Tesla, Third Point LLC, and WisdomTree Investments. On the flip side, Coinbase expects lower trading volume and active users for the current quarter, following a drop in crypto prices and trading action, even as second-quarter results beat expectations.
Coinbase (COIN.US) stock launched today's session with a bullish price gap however buyers failed to uphold momentum and price pulled back from resistance at $294.40 which coincides with 38.2 Fibonacci retracement of the downward move which started after April's IPO. If current sentiment prevails, downward move may accelerate towards support at $ 261.85 which is marked with 23.6 Fibonacci retracement. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.