Crypto Darling's Earnings Debut Grabs Wall Street's Attention

COIN's first-quarter earnings and revenue fell in line with analysts' estimates

Deputy Editor
May 14, 2021 at 2:56 PM
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Cryptocurrency exchange Coinbase Global Inc (NASDAQ:COIN) made its earnings debut as a publically traded company on Thursday evening, and initially the equity skyrocketed, gaining at least 3% in after-hours trading. The firm posted first-quarter earnings of $3.05 per shares on $1.80 billion in revenue, falling in line with analysts' estimates. Coinbase saw a notable surge in revenue from last year, citing strengthening crypto prices of Bitcoin (BTC) and Ethereum (ETH), which made up a significant 39% of the exchanges' trading volume. 

Some of this initial excitement has cooled, however, and at last check COIN was down 3% at $257.42, putting the stock just within striking distance of its all-time closing low of $250.51, touched late last week. It's been roughly a month since the stock debuted on the Nasdaq, with an IPO price of $250 and an open at $381. Since this first day, the equity has suffered a gradual drop, down roughly 20% in the past month, though the $250 mark could act as a potential floor going forward.

Coinbase's earnings report has sparked some chatter among the brokerage bunch. Piper Sandler initiated coverage with an "overweight" rating and a $335 price target. Meanwhile, Rosenblatt Securities slashed its price target to $400 from $450. 

Heading into today, analysts are cautiously optimistic on COIN. Four considered the security a "strong buy," and three said "hold," while the 12-month consensus price target of $418.62 is a wide 62.8% premium to current levels. 

The Wall Street freshman has already captured the attention of options traders, too. So far today, 82,000 calls and 51,000 puts have crossed the tape -- double the intraday average. The most popular contract is the weekly 5/14 270-strike call, followed by the 260-strike put in the same series with positions being opened at both. 

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