Wall Street analysts expect Coinbase’s (COIN) spot trading volumes to slow further in the third quarter, due in part to a lack of catalysts in the crypto market and an uncertain regulatory environment ahead of the presidential election.
When Coinbase reports earnings after the market close on Wednesday, it expects third-quarter revenue to fall by about 13%, to $1.26 billion from $1.45 billion in the previous quarter, according to FactSet estimates. Meanwhile, earnings per share (EPS) are expected to be $0.46, up from $0.14 in the second quarter.
"Coinbase volumes continued to be weak this quarter, primarily due to weak retail trading revenue," Barclays analyst Benjamin Buddish wrote in a note. He gave the stock an equal-weight rating and raised its price target to $175 from $169, while lowering his third-quarter earnings per share estimate to $1.05 from $1.62. (CoinDesk)