PANews reported on May 8 that according to CoinDesk, the situation is grim on the eve of Coinbase (COIN) releasing its first quarter report. Four Wall Street analysts expect its performance to be lower than expected, as the sluggish retail trading may hit high-profit business lines. The company will announce its results after the market close on Thursday. According to FactSet data, analysts expect its earnings per share to fall from $2.26 in the fourth quarter of last year to $1.93, revenue to fall from $2.27 billion to $2.1 billion, and trading volume to fall to about $403.8 billion, down from $439 billion in the fourth quarter of last year.
JPMorgan Chase lowered its earnings per share forecast to $1.59, although it is expected to reach $2.39 after considering asset losses, but the market is still worried. Barclays and Compass Point are more pessimistic. Barclays has significantly lowered its revenue and EBITDA forecasts, and expects retail trading volume to be far lower than expected; Compass Point downgraded Coinbase's stock rating to "sell". However, the stablecoin USDC's market value increased by 42%, which greatly increased Coinbase's related revenue. Barclays estimated that the revenue from USDC in the first quarter reached $304 million. Oppenheimer lowered its trading volume forecast, but pointed out that Coinbase's share of the US spot trading market increased. Analysts are worried about long-term competitive pressures, and decentralized exchanges are attracting retail users. Looking ahead, a short-term rebound in trading volume may be difficult to achieve.
