Coinbase "States the Obvious"

Today is Wednesday, February 22, 2023.

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Coinbase "States the Obvious"

Coinbase (Nasdaq: COIN) dipped by 0.95% in after-hours trading on Tuesday after the cryptocurrency platform posted better-than-expected financial results.

Financials: Coinbase posted a loss of $2.46 per share in the quarter and revenue of $629.1 million; both were better than expected.

Details: Revenue increased due to growing subscription and service income. The number of monthly transacting users was also better than anticipated.

But: The troubled crypto market in 2022 resulted in Coinbase's trading volumes getting cut in half and transaction revenue declining by 66%.

Quote: “To state the obvious, 2022 was a challenging year for crypto markets and our transaction revenues. As macroeconomic indicators like inflation remained high and interest rates rose throughout the year, crypto market cap declined along with broader equity markets.” - Coinbase’s letter to shareholders.

Stock Price: Coinbase’s stock is down 64% in the last 12 months, but is up 10% in the last 30 days.

Final Thoughts: 2022’s crypto winter was horrible for Coinbase. Although the stock improved in early 2023 due to a surprisingly resilient crypto market, it is difficult to trust this company in the short term because of the volatility in cryptocurrency. Plus, there’s a growing risk of potential regulations coming down the pike.

Notables

Notable Earnings Today: Nvidia (Nasdaq: NVDA), Baidu (Nasdaq: BIDU), Wingstop (Nasdaq: WING), Lucid Group (Nasdaq: LCID), TJX (NYSE: TJX), Unity Software (NYSE: U), Fiverr (NYSE: FVRR), Etsy (Nasdaq: ETSY), Wix (Nasdaq: WIX), Pioneer Natural Resources (NYSE: PXD), Overstock.com (Nasdaq: OSTK), Teladoc (NYSE: TDOC), Garmin (NYSE: GRMN), APA (Nasdaq: APA), Dutch Bros (NYSE: BROS), Photronics (Nasdaq: PLAB), Sunrun (Nasdaq: RUN), Allegion (NYSE: ALLE), Coterra Energy (NYSE: CTRA), Altice USA (NYSE: ATUS), Bumble (Nasdaq: BMBL), Cheesecake Factory (Nasdaq: CAKE), Churchill Downs (Nasdaq: CHDN), Coeur Mining (NYSE: CDE), DaVita (NYSE: DVA), eBay (Nasdaq: EBAY), Extra Space Storage EXR), Fidelity National (NYSE: FNF), Fresh Del Monte (NYSE: FDP), Gildan Activewear (NYSE: GIL), Lemonade (NYSE: LMND), Marriott Vacations (NYSE: VAC), Matterport (Nasdaq: MTTR), Mosaic (NYSE: MOS), NetApp (Nasdq: NTAP), PDC Energy (Nasdaq: PDCE), Rackspace Technology (Nasdaq: RXT), Stellantis (NYSE: STLA), United Therapeutics (Nasdaq: UTHR), Wolverine World Wide (NYSE: WWW).

Notable IPOs Today: Global X Nasdaq 100 ESG Covered Call ETF (Nasdaq: QYLE).

Notable Equity Crowdfunding Campaigns Ending Today: Community Musician (Netcapital).

Notable Economic Events Today: FOMC Meeting Minutes (2:00 p.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

Palo Alto Networks Continues Profitable Growth

Shares of Palo Alto Networks (Nasdaq: PANW) jumped by 8.45% in after-hours trading on Tuesday after the cybersecurity company posted positive financial earnings.

Financials: Palo Alto Networks posted earnings of $1.05 per share and revenue of $1.7 billion; both were better than expected.

Details: CFO Dipak Golechha said that the company is focused on “driving profitable growth.” With the stock up by just 5% in the past 12 months, these results are just what the company wanted.

AT&T May Sell Cybersecurity Unit

Speaking of cybersecurity, Reuters reported late Tuesday that AT&T (NYSE: T) may try to sell its cybersecurity division.

Final Thoughts: AT&T has not commented on the report. If AT&T sold the unit, it would help with paying off the company’s enormous debt. The stock is up 7% in the last 12 months.

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Trends to Watch

Layoffs: MATIC Drops 6% as Polygon Labs Slashes Headcount by 20% (Decrypt)

A Rare Moment: Bitcoin Breaches Rare ‘Golden Cross’ Threshold (CoinDesk)

Longer Weekends: Dozens of U.K. companies will keep the 4-day workweek after a pilot program ends (NPR)

Fearful: Dow Industrials Drop Nearly 700 Points on Interest-Rate Concerns (The Wall Street Journal)

Find Shell-ter: Shell Said to Work With Lazard on Home Energy Retail Unit Sale (Bloomberg)

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