Coinbase (PIECE OF MONEY), one of the leading cryptocurrency exchanges in the United States, will report its first quarter 2022 results on May 10.

Coinbase shares have fallen around 48% since the start of the year. The stock came under pressure on fears that the Federal Reserve’s monetary policy tightening has led to liquidity issues.

A decline in the company’s trading volumes in the first quarter could put even more pressure on the stock price.

What do Coinbase website visit statistics show?

As Coinbase is an online trading platform, the company’s revenue comes primarily from the fees it charges for trading cryptocurrencies. As a result, more monthly users equals more trading activity on the platform.

We looked at Coinbase’s monthly visitor data using TipRanks’ new website tool to better understand the current status of the company.

Using the tool, we discovered that there was a 9.3% drop in total global visits to the coinbase.com website compared to the previous quarter (Q4).

However, on a year-over-year basis, monthly visits to the Coinbase website increased by 48.4% in the first quarter.

Experts predict first-quarter loss

Coinbase is expected to post an adjusted loss of more than $0.01 per share in the first quarter, experts say. Q1 EPS forecasts show a sharp drop in earnings from the prior year quarter.

Coinbase also warned investors in February when it released its fourth quarter 2021 results that 2022 could be a tough year for the company. In a statement to shareholders, Coinbase management said, “We enter 2022 with even more unknowns that make our business all the more difficult to predict.”

Additionally, the company forecasts a sequential decline in retail monthly transaction users (MTUs) and total transaction volume in the first quarter of 2022.

The Taking of Wall Street

Wedbush analyst Moshe Katri maintained a buy rating on the stock, but lowered the price target to $160 from $380 per share.

Katri expects lower-than-expected trading volumes to continue through 2022, resulting in negative year-over-year revenue growth. Additionally, the analyst believes that additional spending – related to management’s recruitment targets and aggressive investments – will likely put pressure on EBIT (earnings before interest and tax) margins in 2022.

On TipRanks, Coinbase stock commands a Moderate Buy consensus rating based on 14 buys, two holds, and two sells. The average COIN stock price forecast of $275.76 implies nearly 111.9% upside potential.

Conclusion

Coinbase’s Q1 website visits don’t look impressive. Additionally, rising interest rates, crypto market volatility, and an uncertain macroeconomic environment could further hurt the company’s future performance.

Learn more about the Website Traffic tool in this video by YouTube sensation Tom Nash.

Discover new investment ideas with reliable data

Read the full disclaimer and disclosure