Coinbase (NASDAQ:COIN) Global Inc., the top US digital-asset exchange, saw its Q3 spot trading volume plummet by more than 50% to around $76 billion, reflecting a broader downturn in the cryptocurrency industry triggered by scandals and regulatory hurdles, according to data from CCData. This decline comes as the company braces for its seventh straight quarterly loss on November 2.
Coinbase's market cap stands at a robust 18.28B USD, according to InvestingPro data. Yet, the company has been grappling with a declining trend in earnings per share, which is one of the key InvestingPro Tips for Coinbase. This aligns with the company's financial performance, which has seen a negative P/E ratio of -13.75, indicating that the company is not profitable.
Coinbase appears to have expanded its market share during this period, despite a challenging quarter. This growth is likely due to the regulatory difficulties faced by Binance, one of its main competitors. This is underscored by the fact that Coinbase's stock has shown a significant return over the last week, with a 1 Week Price Total Return of 8.37%, according to InvestingPro's real-time metrics.
Yet, not all analysts hold a positive outlook for Coinbase. Mizuho Securities predicts subpar trading volume and revenue for the company in light of allegations from the U.S. Securities and Exchange Commission (SEC). Analysts, as per InvestingPro Tips, do not anticipate the company will be profitable this year, which is reflected in the negative Operating Income, Adjusted at -1870.44M USD.
Coinbase's stock price has experienced significant fluctuations since its listing on Nasdaq. After peaking at $350, the stock now trades around $80, according to the previous close price from InvestingPro. This sharp decline led Mizuho Securities to assign an underperform rating to the company's stock. It's worth noting that the stock generally trades with high price volatility, another InvestingPro Tip for Coinbase.
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