Coinbase reports market-beating results for its fiscal Q1.
Analysts are still keeping bearish on the Coinbase stock.
Coinbase shares are now up roughly 70% year-to-date.
Coinbase Global Inc are up nearly 15% on Friday after reporting its financial results for the first quarter that handily topped Street estimates.
Coinbase stock up on narrowed loss
Lost $78.9 million versus the year-ago $429.7 million
Per-share loss also narrowed sharply from $1.98 to 34 cents
Revenue tanked 34% year-on-year to $772.5 million
Consensus was $1.45 a share loss on $655 million in revenue
Total operating expenses were down 24% versus last year
The crypto company attributed strength in its quarterly performance partially to the surge this year in the price of bitcoin. Still, Wells Fargo analyst Jeff Cantwell remains bearish on the Coinbase stock due to the regulatory uncertainty.
His $43 price objective suggests more than a 20% downside from here.
BofA is also dovish on Coinbase shares
Remember that Coinbase Global Inc had received a “Wells notice” from the U.S. SEC in late March. It is also noteworthy that trading volume in the recently concluded quarter came in at $145 billion and missed the consensus estimate by $2.7 billion.
To that end, Bank of America analyst Jason Kupferberg also reiterated his “underperform” rating on the Coinbase stock today and said:
We maintain our cautious view on Coinbase shares as we continue to think retail crypto volumes will remain weak and regulatory overhang will linger for some time.
In its current quarter, Coinbase Global Inc expects its subscription and services revenue to sequentially decline to around $300 million, as per its letter to shareholders.
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