Strong Earnings
Coinbase, the popular cryptocurrency exchange, saw its stock jump last week after reporting its first profitable quarter in two years. The company posted a net income of $273 million, or $1.04 per share.
Analyst Optimism
Owen Lau, an analyst at Oppenheimer & Co., believes Coinbase’s profitability could change the perception of the company as an unprofitable entity. He suggests that the next step is to maintain profitability throughout the year.
CEO’s Perspective
Coinbase CEO Brian Armstrong described 2023 as a “great year” for the company. He highlighted cost-cutting measures and revenue growth as key factors in their strong financial position.
Positive Catalysts
Armstrong also cited the launch of Coinbase International Exchange, Ethereum’s Base layer-2, and the company’s role as a custodian for Bitcoin ETFs as positive catalysts.
Future Plans
Armstrong outlined Coinbase’s plans for 2024, which include expanding internationally, developing derivatives, and driving utility in crypto through payments and the Coinbase Wallet.
Current Stock Price
Coinbase shares are currently trading at $180.28, slightly below their yearly high of $193.64.
