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Could Coinbase’s Financial Prank Drive Its Stock Back Up?

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
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Could Coinbase’s Financial Prank Drive Its Stock Back Up?

Coinbase Global Inc is riding a wave of market optimism as its stocks trade up 5.93 percent on Friday. The surge is propelled by favorable news including recent reports highlighting Coinbase’s innovative initiatives and improvements in regulatory compliance. This positive sentiment likely reflects growing confidence among investors in the company’s strategic direction and resilience amidst market fluctuations.

Latest Updates on Coinbase

  • CFO Alesia Haas will share strategic insights at Citi’s 2024 Global TMT Conference, offering investors a peek into Coinbase’s financial health.
  • Goldman Sachs Communacopia + Technology Conference expects Coinbase’s participation, potentially shedding further light on its business model.
  • Barclays upgraded Coinbase from Underweight to Equal Weight with a price target of $169, indicating a more balanced risk/reward profile.
  • VP Kamala Harris pushes for AI and crypto investment, hinting at favorable regulatory support if elected.
  • Realbotix’s positive crypto sentiment may drive stocks like Coinbase higher.

Candlestick Chart

Live Update at 14:38:22 EST: On Friday, September 27, 2024 Coinbase Global Inc stock [NASDAQ: COIN] is trending up by 5.93%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Ups and Downs: A Quick Peek at Coinbase’s Recent Financials

Coinbase Global Inc. continues to be a big name in the crypto world. Recently, the company showed a mixed bag of financial results. The report ending Jun 30, 2024 showed various ups and downs.

Third Quarter Earnings Snapshots

In the third quarter, Coinbase recorded revenues of $1.35B. Despite showing a robust figure, it was coupled with some downside. It’s like baking a perfect cake but messing up the icing. Here’s what’s happened in brief:

Income Statement Breakdown

  • Total Revenue: $1.35B – quite decent, showing their stronghold in the crypto world.
  • Net Income: $36.15M – not mind-blowing but decent enough to keep the lights on.
  • Basic Earnings per Share (EPS): $0.15 – a small yet significant profit for the investors.
  • Revenue per Share: $15.32 – not too shabby.
  • Selling and Marketing Expense: $165.26M – a large bite out of the income.

Balance Sheet Insights

  • Total Assets: $286.96B – solid as a rock!
  • Long-Term Debt: $4.23B – a bit heavy, but manageable.
  • Total Equity: $8.37B – shows room for growth.

Key Ratios at a Glance

  • EBIT Margin: 3.1% – signifies some level of operating efficiency.
  • Return on Assets: 0.7% – mediocre but not bad.
  • Price to Cash Flow Ratio: 23.1 – revealing market expectations from the company are high.
  • Debt to Equity: 0.51 – indicates a balanced use of the debt against equity.

More Breaking News

Stock Performance and Market Reaction

Looking at the csv data for COIN:

  • Recent Close Price: $190.66 (on Sep 27, 2024) – a step up from previous days.
  • The stock has seen fluctuations, opening the day at $183.07 on Sep 27, 2024, and closing at $190.66. That’s a decent swing upwards.

A Short Walk Through the Chart Data

Studying the multi-day and intraday data gives us some key insights:

  • Daily Movement: The highest closing price in the past few days was $190.66 on Sep 27, 2024.
  • Intraday Action: Peaks and valleys galore, culminating at $191.23 before retracting slightly to $190.65.

Financial Performance and Nerdy Numbers

Given the ratios and financials, Coinbase seems to be a boat rocking gently on a wavy sea. The balance sheet shows liquidity, with $7.23B in cash to handle short-term needs. However, long-term debt remains notable at $4.23B. Investors might find comfort in knowing that their ship won’t sink anytime soon.

Impactful News: Navigating the Currents

The selected news articles serve as crucial markers for where Coinbase might be headed. Here’s a breakdown of how these could be the wind in Coinbase’s sails or the anchor that slows it down.

Citi’s 2024 Global TMT Conference

  • CFO Alesia Haas will be discussing Coinbase’s health and direction. Investors will be all ears, looking for signs of strong strategic plans to drive the company forward.
  • This could rejuvenate confidence, potentially boosting the stock back to cruising altitude.

Goldman Sachs Communacopia + Technology Conference

  • Coinbase’s presence at another important conference. More chances to impress investors with their strategies, defending their position and potentially luring more investments.

Barclays Upgrade

  • Barclays’ upgrade from Underweight to Equal Weight with a new price target indicates more trust in the company’s balance. Investors might flock to this stock given this upgraded outlook, seeking balanced risk and reward.

Kamala Harris and Crypto-Favorable Policies

  • Kamala’s supportive stance towards AI and crypto might just be the legislative tailwind Coinbase needs. If policies do swing favorably, Coinbase could well leverage this to expand further in AI-driven financial services.

Realbotix’s AI and Crypto Collaboration

  • Realbotix’s forays into advanced AI might have indirect positive implications for Coinbase. Crypto investments could surge, benefiting Coinbase in the process.

Conclusion

Coinbase finds itself at a pivotal point. With a mix of promising news and solid, yet fluctuating, financials, the future holds interesting possibilities. Keeping a keen eye on upcoming conferences and potential regulatory changes could illuminate the path ahead. While the numbers are grounding, the news gives wings, promising unpredictable yet exciting days for Coinbase and its investors.

All in all, Coinbase surfers can look forward to riding some promising waves, but it’s crucial to stay alert to changing tides.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”