COIN – Coinbase will release its first quarter earnings this week, with analysts expecting an earnings beat on last year.
COIN – Daily Chart
COIN shares have been on a downtrend after peaking in mid-March and will need something exciting to shake off the bearish theme.
The company was facing a lawsuit from a Coinbase investor who claimed that executives avoided $1 billion in losses from insider trading. The case said insiders sold stock days before the company’s direct offering. The board deployed a direct listing instead of a typical initial public offering. They quickly sold $2.9 billion in stock before management revealed material, negative information that hurt market sentiment from the company’s first quarterly earnings release.
Coinbase Shares Forecast
Needham analyst John Todaro has kept a buy rating on Coinbase Global but lowered his price target from $73 to $70. The analyst expects a drop in interest income after the decline in the USDC stablecoin market cap. The coin’s market value has dropped from $44 billion to $30 billion since the collapse of Silicon Valley Bank.
Circle, the USDC issuer, said it had $3.3 billion in deposits with SVB, causing the coin to lose its dollar peg. With lower customer holdings of USDC, Coinbase will make less staking income from its agreement with Circle.
Coinbase, the cryptocurrency exchange giant, also had a tense relationship with the SEC regulator and even threatened to move its business from the US if there is no improvement in the regulatory outlook in the coming years.
