Coinbase (NASDAQ:COIN) posted quarterly results that suggest more upside ahead. In the second quarter, it earned $6.42 a share. Revenue rose by 1099% Y/Y to $2.23 billion.
Coinbase benefited from growth and diversification across its platform. This resulted in its retail monthly transacting users growing by 44% sequentially (from Q1/2021) to 8.8 million. When bitcoin volatility increased on weak pricing, July’s retail MTUs and total trading volume were 6.3 million and $57 billion, respectively.
The company beat its entire 2022 annual earnings estimate in the second quarter alone. The stock, which is stuck in a trading range of $220 to $280, may eventually end. Speculators should expect a sustained breakout next. The threat to bitcoin and other cryptocurrencies will not end. It creates uncertainties for the market. The fear often pushes COIN stock to temporary lows. When that happens, investors should accumulate a position on its weakness.
Coinbase’s 1099% revenue growth outpaced that of Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), and others. But due to the high uncertainties on the cryptocurrency future, markets are discounting COIN stock for those unknowns. Conversely, Facebook’s advertising revenue is consistently growing. Amazon’s online sales and its cloud service, AWS, has steady, sustainable growth.
Watch COIN stock and consider a position whenever the stock falls.