Coinbase Q1 Preview: Can Brian Armstrong's Crypto Giant Beat Bearish Expectations?

Cryptocurrency behemoth Coinbase Global Inc. (NASDAQ:COIN) will release earnings for the first quarter after the market close on Thursday. A quick overview of what's going on with the company and its stock.

Will Coinbase Beat Earnings?

Analysts estimate America’s largest cryptocurrency trading platform to announce earnings per share of $0.26, down a massive 86% year-over-year, and 60% from the previous quarter.

Coinbase is also expected to report quarterly revenue of $1.70 billion, down 26% from the same quarter last year.

Notably, Polymarket bettors gave Coinbase just a 5% chance of beating its quarterly earnings.

COIN Stock Leaning Bearish Or Bullish?

The COIN stock had a consensus price target of $307.42 based on the ratings of 31 analysts. The latest estimates from Cantor Fitzgerald, Piper Sandler and Citizens place the average price target at $261.67, implying a potential upside of 28.83%

Meanwhile, short interest in the stock rose from 24.07 million to 25.20 million, representing 12.80% of the company's publicly available float, indicating moderate bearish sentiment.

The Price-to-Earnings Ratio stood at 45.62, indicating that investors were paying a significant premium relative to a company’s past year of earnings.

The Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, flashed a “Buy” signal for COIN, according to TradingView. The Relative Strength Index hovered just above the centerline at 50, implying a “Neutral” condition.

Crypto Volumes Decline

Trading volume on crypto exchanges steadily decreased during the first quarter amid a broader market downturn, according to data from Coinglass. How this will influence Coinbase's revenue and earnings will become clearer on Thursday.

Price Action: Coinbase shares were up 1.82% in overnight trading after closing 6.14% higher at $202.99 during Monday’s regular trading session, according to Benzinga Pro.

COIN stock excelled in short-term price gains but underperformed in medium- and long-term horizons, paired with a very low Momentum score, according to Benzinga’s Edge Stock Rankings.

Photo courtesy: Thrive Studios ID on Shutterstock.com