We recently sat down with Amrit Singh, lead advisor for HULT Private Capital, who follows the crypto space, to discuss Coinbase’s swi fall from grace. Singh started by saying, “We at HULT Private Capital had high hopes for Coinbase. The crypto exchange had its IPO in April of 2021; through a direct Nasdaq lis ng, not a SPAC, which has been popular but not so successful for investors for the past few years. In Coinbase’s rst day of trading, it nished the day closing at $328.28 per share. This was well above the expected reference point of $250 per share. Through 2021 Coinbase rose with the excitement that many new retail investors had jumping into cryptos, and in November, it reached its all- me high with the per share price closing at $357.39.”
HULT Private Capital’s Singh con nued, “However, from that high, Like the rest of the crypto space, Coinbase has pre y much made a slow crash back to earth. The stock price has dropped 75% from its peak and even dipped below $50 at the end of June; but it has gained over 60% since then.”
HULT Private Capital’s Amrit Singh explained, ”Sadly, Coinbases most recent quarterly results have not soothed their investors’ concerns for the future. In the second quarter of 2022, Coinbase recorded a loss of over a billion dollars, with revenue of only $808.3 million. This revenue missed the Re ni v consensus forecast by nearly 25 million (the forecast was $832.2 million).“ HULT Private Capital’s Singh went on, “In their repor ng, Coinbase stated that their retail transac on revenue, which includes crypto trading, was only $616.2 million, equa ng to a fall of 66% year over year. Retail transac on revenue es mates were around $667 million, so Coinbase missed these by $50 million. This kind of underperformance has resulted in several analysts advising that traders stay away from Coinbase stock un l we see signs of a sustained crypto market recovery.”
HULT Private Capital 