Coinbase’s Stock to Recover Despite 9% Dip After Mixed Q3 Earnings Report

The shares of cryptocurrency exchange Coinbase are down by more than 9% during Wednesday’s pre-market trading session after the company reported a 75% decline in its Q3 profit.

Coinbase’s Q3 Profit Disappoint

Coinbase, one of the largest cryptocurrency exchanges in the world, reported its third-quarter earnings yesterday. The cryptocurrency exchange generated $406 million in the third quarter of the year, representing a 500% increase in revenue from the same quarter last year.

However, the Q3 revenue was down from the $1.6 billion the cryptocurrency exchange generated during the second quarter of the year. The decline comes despite Coinbase listing some popular cryptocurrencies such as Shiba Inu and Dogecoin.

The cryptocurrency space was mostly bearish during the third quarter of the year, with Bitcoin’s price dropping below the $30k mark at some point in July and August. The decline in revenue and profit by Coinbase saw COIN lose nearly 10% of its value during Wednesday’s pre-market trading session.

At the time of writing, COIN is trading at $321 per coin, down from the $359 it closed with yesterday.

COIN Could Recover as Crypto Market Performs Excellently

Coinbase’s stock performance sometimes mirrors that of the broader cryptocurrency market. During the bearish trend in the market in the third quarter, COIN dropped below the $250 mark. However, the stock has embarked on an impressive rally, coinciding with Bitcoin and other cryptocurrencies performing excellently since the start of the fourth quarter.

The recent dip could be a minor one for COIN as investors and the market react to the decline in revenue in the previous quarter. However, COIN could rally higher and reach the $350 level again over the coming trading sessions.

Coinbase has picked up its listing process and has proceeded to list a wide range of cryptocurrencies on its platform. Thus, making it easier for its users to access numerous cryptocurrencies.

The crypto exchange has also been rolling out new services, including its subscription-based service. These latest developments could push COIN higher, and the stock could look to reach the $400 level for the first time since it was listed in April 2021.