Analyst points to Coinbase’s future after disappointing quarter
Coinbase’s stock fell over 4% in after-hours trading following the release of the company’s third quarter earnings on Thursday, which showed declining revenue and profits compared to the previous quarter . Crypto enthusiast and Lumida Wealth Management CEO Ram Ahluwalla believes there is still a bull case for Coinbase, but the company needs to make some changes to unlock value and transform into “the next Square.” Ahluwalla points in a Nov. 3 Twitter thread, out that Coinbase’s top-line revenue declined along with the overall crypto market in Q3. He says the path to GAAP profitability still looks intact, but mainly through cost-cutting measures. For the stock to maintain its high valuation multiple, Coinbase needs to show strong revenue growth. You might also like: Coinbase cuts net loss amid declining trading volume in Q3 2023 The most immediate opportunity, according to Ahluwalla, is payments. By combining Coinbase’s wallet and exchan...