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Coinbase stock falls -15% after hours, after quarterly revenue misses estimates
- CamelCaseName 4y agoEven at a $16B market cap this company's valuation makes no sense.
- sometimeshuman 4y agoAre you implying that it's still over valued ? They are profitable with a PE ratio of barely 5X. Even if their users want to sell their crypto they'll make money on the transaction of the sale. It seems like this stock is a bargain assuming it isn't going to keep getting dragged down by the broader market sell-off. Can someone with a different opinion elaborate ?
- pavlov 4y agoProfitable? They lost $430 million last quarter. And that was before April’s bloodbath.
- whitepaint 4y agoThey made $3.62B last year with ridiculous profit margin of 50%. They have $7B in cash. They are the future. They'll be fine. Your myopic hatred towards crypto is hilarious to me. Go use some defi protocols, you'll be amazed.
- pavlov 4y agoI've used this stuff five years ago: installed Metamask, ran an Ethereum node, tried some mining, wrote some Solidity, and came away with the impression that it's 99.9% total bullshit, can never deliver on its wild promises, and I'd wasted my time. I haven't seen anything since to change my opinion.
- mupuff1234 4y agoThe future of what? Gambling?
- whitepaint 4y agoGo install metamask and play around with some defi protocols. You'll see it yourself.
- gmm1990 4y agohaha that would be bypassing coinbase
- whitepaint 4y agoYou should be able to connect dots.
- daniel-cussen 4y agoI can...defend that under the following grounds. I speculated most of the ride up of bitcoin, bought roughly the trough, sold at roughly the peak. 42% appreciation in 42 days, rode 90% of the upward cycle. So the reason I went with coinbase was because there's a concern which has priority over just getting your speculation right, which is property rights. Coinbase gives you that. These guys made like $120, I think, of my purchase and sale, really fat margins, but that's fine because I made three times that on the speculation, and I knew their security was the best. The fees were excessive but not impactful compared to the fact of strong property rights, over something that can be stolen in a millisecond. So they can make profits, they're capable of that. They just need the crypto markets to be really volatile, and big winners, and big losers[1]. I guess set it up like a casino, but again, you just gotta be right. [1] I wonder if anybody does this, deliberately bets on something they know will go down, goes long that is, not short, on something that will fall. Stock market masochism, similar to what people think is tributary masochism on my part, just my paying additional taxes "for no reason" ie gratitude.
- vincentmarle 4y agoIt almost feels like we were in a bubble this whole time.
- FollowingTheDao 4y agoBig deal. They are down 78% from their IPO. Just another unicorn in heard of horses…
- candiddevmike 4y agoThis is going to have a domino effect on all the blockchain startups, I think. You could argue all startups are going to struggle raising, but this will harm the entire crypto sector more. IMO, COIN was supposed to be proof that crypto can be a long term success, and this doesn't bode well for future exits.
- Spartan-S63 4y agoPersonally, I'm good with a crypto winter when it comes to VC investment. Using the blockchain for financial transactions is one of the most dubious applications of the technology. We shouldn't be throwing money hand over fist at this application and rather be encouraging folks to innovate where it makes sense — things like public records in countries where the government isn't reliable, etc.
- zitterbewegung 4y agoTLDR: Note that they missed the estimates as follows EPS Revenue -238.20% -20.98%
- ldjkfkdsjnv 4y agoMy hypothesis about coinbase and companies like them is that their hiring process is bad. Like they arent hiring the talent they think they are, and the higher ups have no clue what theyre doing when hiring talent. Leetcode interviews bring memorizers and career strivers in the door, not innovators. Facebook is famous for not creating any new products, and copying literally everything. Theyre also famous for a SWE interview process that emphasizes literal memorization of algorithms. Ofcourse tightening monetary policy has had a huge effect, but where are the innovative products from coinbase? What are they doing with all those people? I argue that a company like Amazon, that actually focusses on behavioral questions brings in far better job candidates.
- coinbasetwwa 4y agoHave you interviewed there? The process is literally the opposite of what you’re describing. For frontend roles they test knowledge of frontend APIs and low level reasoning & decision making. They definitely have the least Leetcode style interview I’ve ever encountered.
- goalieca 4y agoInnovation has a lot to do with leadership and corporate culture. If your engineers are on a leash then you’re stuck with nothing just ticket closers.
- ldjkfkdsjnv 4y agoLeetcoders love leashes
- zitterbewegung 4y agoWhat exactly should Coinbase innovate on? Being a cryptocurrency exchange that is respectable and reliable would make money in the space. Instead they are trying to do multiple products poorly. Leetcode interviewees can execute plans well. You don’t need as many innovators as people to execute some vision. What I see is that people aren’t using the platform as much. Cutting the fat and focusing on their core business would be better.
- woodruffw 4y agoApropos of nothing: I find it funny that (1) Coinbase's "independent accounting firm" was founded by them[1], and (2) that the audits by said firm contain a "signature" of the law firm as if there is a living human being named Grant Thornton signing off on these[2]. Page two. [1]: https://www.centre.io https://www.centre.io [2]: https://www.centre.io/hubfs/PDF/2022%20Circle%20Examination%20Report%20March%202022.pdf https://www.centre.io/hubfs/PDF/2022%20Circle%20Examination%...
- berberous 4y agoGrant Thornton is an accounting firm, not a law firm. And signing that way is customary for a legal or accounting opinion.
- deleted 4y ago[deleted]
- Beaver117 4y agoMy question is why wasn't this already priced in? We know what Coinbase fees are. All crypto volume history is public. Why does the market drop 15% after earnings as if this was a surprise?
- bb88 4y agoThose who bought put options on coinbase are feeling the market love. I don't think this is the end of crypto, but crypto's armor has a large dent where the head would be.
- daenz 4y agoInteresting that this and all other Coinbase articles are dropping off of the front page. Why would anyone flag these?
- mdoms 4y agoInteresting indeed.