Coinbase (COIN), one of the leading cryptocurrency exchange platforms in the United States, will release its first-quarter 2022 earnings on May 10.
Coinbase’s stock has dropped by around 48% year-to-date. The stock has been under pressure due to concerns that the Federal Reserve’s tightening of monetary policy has resulted in liquidity challenges.
A drop in the company’s trading volumes in the first quarter could put even more pressure on the stock price.
What does Coinbase’s Website Visit Statistics Indicate?
As Coinbase is an online trading platform, the company’s revenues are mostly derived from the fees it charges for trading cryptocurrencies. As a result, more monthly users equals more trading activity on the platform.
We looked into Coinbase’s monthly visitor data using TipRanks’ new website tool to gain a better understanding of the company’s present status.
Using the tool, we discovered that there was a 9.3% decline in total global visits to the coinbase.com website from the preceding quarter (Q4).
However, on a year-over-year basis, monthly visits to the Coinbase website spiked 48.4% in the first quarter.
Experts Predict Loss in Q1
Coinbase is expected to report an adjusted loss of more than $0.01 per share in the first quarter, according to experts. The Q1 EPS forecast shows a steep decline in earnings from the year-ago quarter.
Coinbase also warned investors in February, when it released its Q4 2021 results, that the year 2022 could be difficult for the company. In a statement to shareholders, Coinbase management said, “We enter 2022 with even more unknowns which make our business all the more difficult to forecast.”
In addition, the business anticipates a sequential fall in retail Monthly Transacting Users (MTUs) and total trading volume in the first quarter of 2022.
Wall Street’s Take
Wedbush analyst Moshe Katri maintained a Buy rating on the stock but decreased the price target to $160 from $380 per share.
Katri anticipates lower-than-expected trading volumes to continue into 2022, resulting in negative year-over-year revenue growth. In addition, the analyst believes that additional expenses — linked with management’s aggressive recruiting goals and investments — will likely put pressure on EBIT (earnings before interest and taxes) margins in 2022.
On TipRanks, Coinbase stock commands a Moderate Buy consensus rating based on 14 Buys, two Holds, and two Sells. The average COIN stock price prediction of $275.76 implies almost 111.9% upside potential.
Bottom Line
Coinbase’s website visits for Q1 don’t seem impressive. Furthermore, rising interest rates, crypto market volatility, and an uncertain macro environment could further hurt the company’s upcoming performance.
Learn more about the Website Traffic tool in this video by YouTube sensation Tom Nash.
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