Today is Wednesday, May 11, 2022.
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Crypto Crash Crushes Coinbase
Financials: Coinbase reported a loss of $1.98 per share and revenue of $1.16 billion; both were below estimates.
Losing Users: Monthly transacting users in the quarter totaled 9.2 million, which is 19% lower than the previous quarter. Trading volume was $309 billion, down 44% from the previous quarter.
The Bad: Coinbase blamed the decline on lower crypto asset prices and volatility in the market. Crypto market capitalization fell 30% in January and the price of Bitcoin dropped 17% in April.
The Good: Coinbase wants to diversify its business beyond just crypto. The company is focused on developing a marketplace for NFTs (non-fungible tokens) for example.
Numbers: In the past six months, shares of Coinbase are down 78%.
Final Thoughts: Coinbase’s financial earnings report is also a good indicator of the current pain in the broader crypto market.
Notable Earnings Today: Walt Disney (NYSE: DIS), YETI Holdings (NYSE: YETI), Fiverr (NYSE: FVRR), Sandstorm Gold (NYSE: SAND), Evgo (Nasdaq: EVGO), Rivian Automotive (Nasdaq: RIVN), Krispy Kreme (Nasdaq: DNUT), Dutch Bros (NYSE: BROS), Wendy's (Nasdaq: WEN), Beyond Meat (Nasdaq: BYND), Paysafe (NYSE: PSFE), Vermilion Energy (NYSE: VET), Performance Food Group (Nasdaq: PFG), Sonos (Nasdaq: SONO), Atotech (NYSE: ATC), Bumble (Nasdaq: BMBL), Mastercraft Boat Holdings (Nasdaq: MCFT), Coupang (NYSE: CPNG), Aspira Women's Health (Nasdaq: AWH), Atlas (NYSE: ATCO), Conifer Holdings (Nasdaq: CNFR), Energous (Nasdaq: WATT), GeoPark (NYSE: GPRK), NeoGames (Nasdaq: NGMS), Pan American Silver (Nasdaq: PAAS), Paysign (Nasdaq: PAYS), Perrigo (NYSE: PRGO), Takeda Pharmaceutical (NYSE: TAK), Toyota Motor (NYSE: TM), Traeger (NYSE: COOK), Wolverine World Wide (NYSE: WWW).
Notable IPOs Today: Hanover Bancorp, Inc. (Nasdaq: HNVR), Wytec International Inc (Nasdaq: WYTC), SaverOne 2014 Ltd. (Nasdaq: SVRE), Bright Green Corp (Nasdaq: BGXX).
Notable Equity Crowdfunding Campaigns Ending Today: Atlis Motor Vehicles (Rialto Markets), Sazi Foods (Netcapital).
Notable Economic Events Today: Core CPI / CPI (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m.), Federal Budget Balance (2:00 p.m. ET).
Roblox Experiences Growth Slowdown
Shares of Roblox (NYSE: RBLX) fell 4.44% in after-hours trading on Tuesday after the video game developer posted negative financial earnings.
Financials: Roblox reported a loss of 27 cents per share and $631 million in bookings; both were below estimates.
User Growth Slows: The company’s average active daily users hit 54.1 million. This represents a 28% increase, but last year the company had an increase of over 70%. The company’s userbase is growing at a slower rate.
Final Thoughts: This stock is another pandemic darling that is struggling to survive in a post-pandemic world.
2022’s Private Sector Tech Decline
It’s not just technology in the public sector that has had a rough start to 2022 - so has the private sector.
Details: Several tech startups and private tech companies have announced layoffs in recent weeks, including Cameo, Thrasio, and Workrise. This suggests that private companies in tech are struggling in 2022.
Final Thoughts: If you’re into equity crowdfunding, maybe stay away from tech startups this year.
Trends to Watch
Headache Business: Pfizer to pay $11.6 bln for Biohaven to tap migraine market (Reuters)
They Got Around To It: Car-Sharing Startup Getaround Nears InterPrivate SPAC Merger (Bloomberg)
Netflix and Chill on the Ads: Netflix Tells Employees Ads May Come by the End of 2022 (New York Times)
Don’t Panic: Bitcoin investors are panicking as a controversial crypto experiment unravels (CNBC)
Cue the ‘Buy the Dip’ Memes: ‘Buy the Dip’ Believers Are Tested by Market’s Downward Slide (The Wall Street Journal)
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