Coinbase Global Inc. (NASDAQ: COIN), the prominent U.S. digital-asset exchange, has reported a substantial drop in its Q3 spot trading volume, plunging by more than 50% to approximately $76 billion. This decline reflects the broader challenges and uncertainties in the cryptocurrency industry, driven by scandals and regulatory hurdles, as indicated by data from CCData. The significant downturn coincides with the impending announcement of the company’s seventh consecutive quarterly loss scheduled for November 2.
Despite this challenging quarter, Coinbase maintains a formidable market capitalization, standing at $18.28 billion USD, as reported by InvestingPro data. However, the company has been grappling with a persistent decline in earnings per share, a pivotal metric in InvestingPro’s evaluation. The negative P/E ratio of -13.75 underscores Coinbase’s unprofitable status.
Notably, Coinbase seems to have expanded its market share during this turbulent period, potentially benefiting from regulatory difficulties faced by Binance, one of its primary competitors. This growth is underscored by Coinbase’s stock demonstrating a significant return over the last week, with a 1 Week Price Total Return of 8.37%, based on real-time metrics from InvestingPro.
Despite these positive indicators, not all analysts share an optimistic outlook for Coinbase. Mizuho Securities has projected subpar trading volume and revenue for the company, citing the ongoing allegations from the U.S. Securities and Exchange Commission (SEC). As per InvestingPro Tips, analysts do not foresee the company turning profitable this year, reflecting the negative Operating Income, Adjusted at -1870.44 million USD.
Coinbase’s stock price has exhibited remarkable volatility since its Nasdaq listing. After reaching its peak at $350, the stock is currently trading around $80, as per the previous closing price reported by InvestingPro. This sharp decline led Mizuho Securities to assign an underperform rating to the company’s stock. It is worth noting that Coinbase’s stock typically experiences high price volatility, in line with another InvestingPro Tip for Coinbase.
