Coinbases This week’s earnings report could be crucial to the stock, says a trader.
Although the shares of the cryptocurrency trading platform have fallen from their market price, “that negativity has been washed away,” Blue Line Capital founder and president Bill Baruch told CNBC “Trading nation” on Friday.
“I think their user growth will exceed the verified users of 60 million, and I think that will be some kind of benchmark that they will continue to feed on. They are also paid for with the trading activity. I think that’s it will pick up “even if like large crypto assets Bitcoin or ether Fight, he said.
That bodes well for Coinbase’s second-quarter report scheduled for Tuesday afternoon, said Baruch, who owns Bitcoin and Ethereum.
“There’s good trendline support it’s coming off and it’s broken out of a resistance wedge,” he said. “I think this thing can go up to 290-300 and I think the revenue should be positive and the forecast should be good.”
Coinbase shares ended Friday at $ 258.26, up about 1%. They rose another 3.8% to $ 268 in Monday’s pre-trading session. A rise to $ 290 or $ 300 would be a 12-16% increase from Friday’s closing price.
Disney’s The earnings report for the third quarter should also be noted, said Gina Sanchez, founder and CEO of Chantico Global, in the same interview.
“This is a company that has made an all-time home run with Disney +, especially during the pandemic, but which has been completely overshadowed by the $ 4.5 billion loss in revenue it suffered from the closure of the parks and their studios” , said Sanchez, also chief market strategist at Lido Advisors.
“But look … this is coming back,” said Sanchez. “They’ll get that park revenue back, and in the meantime, Disney + is a much more lucrative way for Disney to bring new content to market so they can keep more of it.”
Disney is due to report on Thursday afternoon. The stock closed less than half of 1% higher on Friday, but lost some of its momentum in pre-market trading on Monday.
Disclosure: Baruch owns Bitcoin and Ethereum. Lido Advisors owns shares of Disney.