Coinbase shares plunge as Q2 earnings show gloomy outlook
Watch out for Coinbase (all-session on the IG platform) heading into the US open as the company reported a bigger than expected loss in the second quarter (Q2) last night after the market close.
The post-market trading saw the share price drop over 15% on the back of trading volumes more than halving during the second quarter.
(Video Transcript)
Coinbase shares nosedive
Coinbase Global Inc (All Sessions) shares dropped significantly in extended hours trading yesterday after the company posted a bigger than expected loss in its second quarter (Q2) earnings.
Coinbase chart
Let's take a look now at a chart of Coinbase to see how it's trading, because we are heading into the US market open, but we are currently in the all-sessions on the IG platform, which means you can trade Coinbase from 9 a.m. in the UK.
So far today we haven't managed to see any momentum after the announcement of the earnings yesterday. Most of that loss, as you can see on the daily chart, taking place yesterday, finishing the day down over 15% with a 20% range throughout the day.
Now, the cryptocurrency exchange posted a loss of $4.98, which is more than double what was expected by analysts. Revenues also fell short of estimates at $808 million. A lot of this hit, though, came on the back of the company announcing that trading volumes had more than halved in the second quarter.
We know that the dip in cryptocurrencies, mostly led by Bitcoin and Ethereum, which are a big part of Coinbase, is that trading has been the main driver behind this drop in trading volumes for the crypto exchange. But you can see here the drop coming from the highs here from November 2021.
It's been a clear downward channel since then, finding a little bit of support over the last two or three months where we saw cryptos like Bitcoin finding a little bit of support along the way, seeing those buyers coming in.
But despite the attempted rally over the last ten sessions or so yesterday, the share performance really pulled back. They're heading towards a new area of support.
So watch out for Coinbase at the US market open at 2:30pm. We're really expecting to see traders piling into this move.
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