Robinhood And Coinbase Shares Drop After Low Q1 Earnings Analysis

Robinhood and Coinbase shares drop after the Q1 earnings analysis prediction by Goldman Sachs as we are reading more in our latest crypto news.

The Robinhood shares dropped by 5% while Coinbase was down by 2.5% however, the latter had a very good Q4 while the former didn’t.
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Goldman Sachs believes they will both underperform relative to the expectations in the first quarter. As both Robinhood and Coinbase shares drop in the prediction, the Goldman analyst Will Nance downgraded the tradign app’s stock from neutral to sell. Coinbase was down by 2.5% after Nance predicted that it will join Robinhood with earnings below expected of the Q1 projections. In reference to Robinhood, Nance noted there’s a decline in broader industry crypto trading volumes.

Robinhood started its operations as a stock trading app but branched later to cryptocurrencies. Users can purchase or sell even different assets on the platform like Bitcoin, Bitcoin Cash, Doge, Ethereum Classic, Ethereum, and Litecoin. Coinbase on the other hand is a crypto firm with 170 coins listed as per the data from CoinMarketCap. The first quarter of 2022 was quit3e underwhelming for crypto prices compared to the volatile 2021 when the price of BTC increased from under $30,000 on New YEar’s to a high above $69,000.

During the Q1 by 2022 by contrast, the price movement subdued and operated in aband between $35,000 and $45,000. The crypto exchange reported revenue of $2.5 billion for Q4 alongside the record for its. While it also reported a trading volume of $547 billion, Goldman predicted that it will drop to $302 billion for the first quarter. Coinbase declined to comment but did note in its Q4 earnings call that it expected the volumes to drop.

In the meantime, Robinhood didn’t have a great Q4 to point to and has a total of $363 million with $48 million in crypto revenue that was up on a year-to-year basis but below the Q2 and Q3. Nane said the company has a limited path to near-term profitability. The tradign company has been trying to increase traction for the crypto offering and it announced users on the waitlist for the crypto wallet that can be used in the new feature to transfer the holdings of the app. At the same time, Robinhood also announced that it will integrate LN for BTC transactions.

Lightning enables faster and cheaper payments in BTC and is used by Twitter and the Tips feature but also in El Salvador for merchant transactions. Coinbase will reveal its Q1 earnings in May while Robinhoodw will do so this month.