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Coinbase’s Low Trading Volume
Shares of Coinbase (Nasdaq: COIN) fell 5.83% in after-hours trading on Thursday after the cryptocurrency exchange platform posted mixed earnings results.
Financials: Coinbase reported earnings of $3.32 per share and revenue of $2.5 billion; both were better than expected.
The Good: Trading volume hit over $500 billion and Monthly Transacting Users (MTU) hit over 11 million.
The Bad: The problem with Coinbase was its guidance for the current quarter. The company estimates that its trading volume will drop this quarter due to “global macroeconomic headwinds, rising interest rates, inflation, and more recently, geopolitical instability.”
Stock Price: Shares of Coinbase are down 45% in the past 12 months.
Final Thoughts: Bullish investors are banking that more global crypto adoption will help Coinbase. However, despite more adoption in the past year, the stock hasn’t performed well.
Notable Earnings Today: Foot Locker (NYSE: FL), EOG Resources (NYSE: EOG), Northern Oil & Gas (NYSE: NOG), MoneyGram International (Nasdaq: MGI), Ocugen (Nasdaq: OCGN), Diana Shipping (NYSE: DSX), Vistra (NYSE: VST), LendingTree (Nasdaq: TREE), Icahn Enterprises (Nasdaq: IEP), AES Corp. (NYSE: AES), Cinemark Holdings (NYSE: CNK), E.W. Scripps (Nasdaq: SSP), Immunogen (Nasdaq: IMGN), Li Auto (Nasdaq: LI), Formula One Group (Nasdaq: FWONK), Liberty SiriusXM Group (Nasdaq: LSXMA), Starwood Property Trust (NYSE: STWD).
Notable IPOs Today: Akanda Corp. Common Shares (Nasdaq: AKAN), Cartica Acquisition Corp Class A Ordinary Shares (Nasdaq: CITE), Valuence Merger Corp. I (Nasdaq: VMCAU), Patria Latin American Opportunity Acquisition Corp. Unit (Nasdaq: PLAOU), Incannex Healthcare Limited American Depositary Shares (Nasdaq: IXHL).
Notable Equity Crowdfunding Campaigns Ending Today: The Hot Dog Box (MainVest), CabinetM (Wefunder), Ecoventz (TruCrowd), XENIA (MainVest), Qoins (Republic), Williamson Mead and Brewing (MainVest), Stage (NetCapital).
Notable Economic Events Today: Core Durable Goods Orders (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), PCE Price Index (8:30 a.m. ET), Pending Home Sales (10:00 a.m. ET), Michigan Consumer Expectations (10:00 a.m. ET), Michigan Consumer Sentiment (10:00 a.m. ET).
Block Soars on Guidance
Shares of Block (NYSE: SQ) jumped 18.31% in after-hours trading on Thursday after the financial services and digital payments company posted positive earnings.
Financials: Block reported earnings of 27 cents per share and revenue of $4.08 billion; both were better than expected.
Outlook: The company’s upbeat guidance for the current quarter drove the stock price higher.
Final Thoughts: Shares of Block are down 58% in the past 12 months. Some investors may want to buy the dip on this stock.
SafeMoon Red Flags
While SafeMoon has been one of the most popular cryptocurrencies in the past year, there are some big concerns with it.
Name Calling: Critics have referred to SafeMoon as a giant “pump-and-dump scheme” and a “meme coin.” The price has been driven largely by social media interactions fueled by celebrities.
Lack of Technology: On paper, there are no concrete technical advantages of SafeMoon over the other coins.
Ponzi Scheme: SafeMoon has also been accused of being a Ponzi scheme. The CEO of SafeMoon owns over half of its liquidity. The coin is only tradable on certain platforms, thus liquidity is limited.
Final Thoughts: SafeMoon’s price has been down in the past 3 months.
Trends to Watch
Volatile: Stocks close higher while Russia's advance into Ukraine intensifies (USA Today)
Happy Holidays: Etsy soars after posting holiday quarter results ahead of expectations (Seeking Alpha)
Good News: Ethereum Gets an Upgraded Scaling Testnet – And It's Actually Years Ahead of Schedule (CoinDesk)
Unintended Consequences: Ukrainian central bank suspends electronic cash transfers, bolstering the use case for crypto (CNBC)
Merger: Healthcare Realty Trust Nears Deal With Healthcare Trust (The Wall Street Journal)
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