Coinbase Stock Slides 19% Ahead of Earnings as $165 Support Nears

Coinbase stock price has remained under pressure this week as cryptocurrencies lost momentum. COIN dropped to $169, down by nearly 20% from its highest point this month. Focus now shifts to its upcoming earnings report, which will provide more color on its business and what to expect for the remainder of the year.

Coinbase Stock in Focus as its Earnings Loom

COIN shares have dropped substantially in the past few weeks as Bitcoin and most altcoins have lost momentum. Bitcoin dropped to $81,600 on Friday from this month’s high of $87,254. Ethereum has fallen to $2,397 from the September high of $2,806. The market capitalization of all coins has dropped to $2.73 trillion, losing close to $300 billion in value.

Coinbase stock will next react to its upcoming earnings report, which will provide hints on its business. Analysts expect the upcoming results to show that the company’s revenue dropped by 35% in the quarter to $1.21 billion. It also expects to have an earnings-per-share of minus $0.09 after making $1.5 in the same period last year.

Coinbase’s revenue decline will happen because of the crypto winter that existed during the quarter. On the positive side, Bitcoin and other coins started rising during the quarter. As such, it will be interesting to see how this impacted Coinbase’s business.

The stock will also react to its forward guidance. Analysts expect the guidance to show that its fourth-quarter revenue will be $1.37 billion, down by over 22% from a year earlier. If this is correct, it will bring its annual revenue to $5.38 billion, down by 25% from a year earlier.

Coinbase Earnings to Provide Color on Other Parts of Coinbase’s Business

The upcoming earnings report will provide more information on other parts of Coinbase’s business. For example, the company has transitioned from being a crypto exchange into an everything exchange, where people can trade stocks, ETFs, and other assets. By introducing stocks, Coinbase aims to reduce the volatility of the crypto market.

Coinbase has also introduced a predictions marketplace, where people can bet on real-life events like sports and politics. Its last earnings report showed that its predictions marketplace was doing well, especially because of the World Cup.

Coinbase has also become a big player in the stablecoin industry through its partnerships with Circle Internet Group. It keeps all the interest it earns from the USDC supply in its platform.

At the same time, the company has launched an agents tool, which lets people connect AI agents like Muse and Replit on its platform. These agents can trade on the customers’ behalf.

Analysts have remained optimistic about Coinbase stock. Needham has hiked the target from $200 to $205. Citigroup has hiked the target from $210 to $230, while Morgan Stanley has a target of $258. Some of the other top analysts with a bullish view are from Goldman Sachs, Barclays, and BTIG.

Coinbase Stock Price Technical Analysis

The daily chart shows that the COIN stock has slumped in the past few days. It dropped from a high of $207 earlier this month to the current $169.

The stock has already dropped below the 50-day moving average and formed a descending channel. Also, it has moved below the Supertrend and Ichimoku cloud indicators.

Therefore, the stock will likely continue falling in the near term. If this happens, the next level to watch will be the psychological level of $150. On the other hand, a move above the resistance at $180 will invalidate the bearish outlook.

This article is for informational purposes only and does not constitute financial advice. Stock and cryptocurrency investments carry substantial volatility and potential capital losses. Readers should conduct independent research before making investment decisions.