Why Coinbase Stock Popped and Then Dropped Today
Shares of cryptocurrency company Coinbase Global (NASDAQ: COIN) jumped as much as 8.7% in early trading on Wednesday only to fall by 7.6% midday. Shares are down 3.5% at 3:15 p.m. ET.
The market is reacting to Coinbase's earnings release last night, which was good or bad depending on how you look at it. Revenue dropped to $629 million from $2.5 billion a year ago and the net loss was $557 million compared to an $840 million profit last year.
But investors are looking more at trends in spending and more sustainable businesses than trading and there's progress on both fronts. Subscription and service revenue was $282.8 million, up from $213.4 million, and operating expenses were down from $1.58 billion a year ago to $1.18 billion. There will be further reductions after a 20% headcount reduction in January.
Source Fool.com
