Coinbase cruises earnings as stock rallies 6% 🪙
A positive quarter: Coinbase made $629 million vs the $581 million expected in Q4, giving investors some optimism in what’s been a difficult time for crypto backers.
Bitcoin boost: Part of this is down to Bitcoin being up 9% this past month - with Coinbase being a market leader, many users flock to the app when wanting to make a purchase
Job cuts: In January, Coinbase cut 20% of its workforce to help navigate the prolonged ‘crypto winter’, which also helped revenue
‘Hodl’ing’: Despite market turmoil, customers continue to 'hodl' onto their crypto. It may indicate that retail customers, on average, maintain a long-term conviction in crypto and are waiting for the next bull market cycle.
It’s not all good news: Investors were brought back to reality when it was announced transaction volume fell 12% from Q3. Share price then flattened during after hours trading.
DraftKings scores at the Super Bowl as stock leaps 28% 🏀
Supremity of the Super Bowl: Recent stats show DraftKings, the American sports betting company, was the most downloaded sportsbook during this year’s Super Bowl.
A sticky product: When DraftKings gains a customer, it’s likely they’ll stay. According to PYMNTS, the betting company has averaged an annual retention rate of 87% over the past four years.
Active users are up: DraftKings ended its year reporting 2.6 million monthly users, a 31% increase compared to the previous year
Walmart slips 4% at the checkout 🛒
Good earnings, but a very cautious vision: Walmart’s stock price slipped even though the retail giant beat revenue expectations.
Pressured shoppers: Walmart’s CFO stated that shoppers remain pressured, as customers look to cut back on non-essential items.
Life as a blue-chip stock: Walmart announced that it's raising its dividend again, rather than launching any ambitious growth plans. Walmart is one year off becoming a dividend king (a stock that has increased its dividend 50 years running), which may explain why it’s prioritising stability during difficult economic times.
What have we learnt this week? 🤓
Crypto has been in a bear market for some time now, but it seems people are reluctant to sell. Are they anticipating another bull market, or do they simply not want to sell? Time will tell for Coinbase investors.
The Super Bowl is a worldwide event that can act as a make-or-break moment for many companies. Savvy investors may anticipate which companies are set to do well before making their market moves.
Positive earnings don’t always result in a positive move for a company’s share price. Comments from a company director can have just as much of an effect, as demonstrated by Walmart.
*Figures correct as of Feb 22nd 2023.
Past performance does not guarantee future results. Capital at risk when investing.
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