Will Coinbase Stock Crash After Reporting Earnings Tomorrow?
These notes were generated by AI and may contain inaccuracies.
Coinbase is set to report earnings tomorrow. On the larger time frame, it is retesting a common support range around $150 per share. Last time it traded at $150 was during the trade war selloff in 2025. It retested that range middle to late 2024 and end of 2023, when it was previous resistance.
Coinbase experienced selling pressure today due to Robinhood's earnings reported yesterday. Robinhood lowered guidance for 2026. Robinhood and Coinbase have similar businesses: revenue from trading fees, trading activity, and payment for order flow on free or low-commission platforms. High trading activity at all-time highs generates more revenue.
Robinhood highlighted declining trading activity after crypto peaked in Q4 2025. Coinbase, more focused on crypto (down 50%), faces similar pressures. Bitcoin down 50% from highs of $444 to current $153 (65% retracement).
Opinion: Coinbase will sell off further as long as crypto falls. Overleveraged crypto traders getting liquidated reduces buying pressure, increases panic selling, slows trading activity. If continues, could break support at $140, retest $120, $115, or $100.
Hopes Coinbase avoided overleveraging like FTX, which couldn't handle withdrawals during retrace. Grown to appreciate these businesses despite overvaluation. Investing.com analysts see upside; respects bullish views but wants a 'killer deal'.
Can't predict crypto or Coinbase bottom; crypto looks weak. P/E ratio: 12.8 times earnings. Revenue: $7.37 billion, net income: $3.2 billion. Investing Pro research mixed. Performed well in 2021 crypto peak, then crypto winter.
In 2022 crypto winter, revenue dropped sharply. Bottomed mid to late 2023, then upticked. Bitcoin weekly chart: flatlined 2022, upticked mid 2023, higher highs/lows late 2023. Direct correlation: crypto price action and trading activity drive Coinbase revenue via fees and order flow.
If slowdown expected, revenue retraces, stock falls. Deal hunter; would buy at $60-80 per share depending on crypto lows.
Rivian down from highs of $23 to lows of $13-14. Inconsistent, speculative, oversold but can get cheaper. Not profitable: P/E -5.1, loses $3.5 billion. Government subsidies gone; needs to reduce losses. Investors watching 2026 guidance. If exceeds expectations, possible uptick; trading earnings risky.
NBIS (technology company, full stack infrastructure services) called out at highs of $100, now down 30% testing $70-80 support. Gimmicky, pre-revenue companies. Cash: $218 million, P/E 195 times earnings. Rose from $20 to $141 (7x quickly) - red flag.
Speculative stocks sell off hardest in uncertainty or recession; institutions trim first. Currently $88. Great 2026 guidance could retest $100-110; stays away due to volatility.
Main focus: MSTZ (double leveraged inverse ETF of MSTR). Doesn't trade Bitcoin directly but shorts MSTR (follows Bitcoin, sometimes amplifies downside). As Bitcoin/MSTR sell off, MSTZ rises. Not for beginners.
Made $7,500 today closing trade. Plans potential long on MSTZ tomorrow if negative Bitcoin/MSTR action, to be discussed in live trading session.
Recap: Coinbase, Rivian, NBIS report earnings tomorrow; prep for those. Questions in comments. Join live trading session (second link in description). End year green.
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