Coinbase Earnings Preview
While Bitcoin $BTC is down 15% in the last five days, Coinbase $COIN is down 40%!

Today Coinbase reports earnings, with analysts expecting $0.17 in earnings-per-share (EPS) on $1.48B in revenue. Let's see how this crypto giant stacks up with some competitors!

It isn't easy being a fintech stock! Each of these businesses are 70% or more off of their 52wk highs with $COIN down 80%. Unlike the rest of the stocks in this comparison, $COIN generates huge net income margins of 45%! These are higher margins than Microsoft $MSFT, which we have added to the chart.

Bears will argue that $COIN is just an exchange and will eventually have margins similar to $NDAQ and $IEX. To their point, $COIN's margins have dropped heavily from a high of 59% to 34%. This is still roughly double $IEX and $NDAQ at ~18%.

Bulls will argue the valuation is too cheap to ignore. To their point, $COIN trades at a trailing earnings multiple of 3.7x, but slower growth estimates suggest a forward earnings multiple north of 20x.
What is your take on Coinbase?
18 VotesPoll ended on: 05/11/22
Joey Hirendernath's avatar
I feel like Coinbase's revenue composition is coming from increasingly unstable assets.
Sachiv's avatar
@joeyhirendernath agree - but, uncertainty creates room for opportunity. What I’m watching is product and services cadence from $COIN management. What can they upsell to customers, or what platforms can they create around the business to lock in customers?(in a good way)