Should you buy Coinbase stock after Q4 results?

• Coinbase reports market-beating results for its fiscal Q4.
• Mizuho’s Dan Dolev shares his outlook on Coinbase Global.
• Coinbase stock is currently up about 90% for the year.

Coinbase Global Inc (NASDAQ: COIN) is trading slightly up in extended hours after reporting market-beating results for its fourth financial quarter.

How is its current quarter going so far?

Also a positive was its update on the current quarter.

Year-to-date, Coinbase said the crypto market cap is up 40% and transaction revenue was $120 million last month. Nonetheless, the crypto company is not very bullish on the rest of the year, as per its letter to the shareholders.

Given the unpredictability of crypto markets, we have limited certainty around the rest of the year.

Coinbase stock is currently up about 90% for the year.

Is Coinbase stock a ‘buy’ now?

Coinbase ended the quarter with 8.3 million monthly transacting users – slightly ahead of 8.2 million that Street had anticipated. Still, Mizuho’s Dan Dolev said on CNBC’s “Closing Bell: Overtime”:

The take rate continues to come down. Interest income is non-core to this business. Retail investors are uninvolved. So, I don’t think it’s much to ride on about.

Dolev currently has an “underperform” rating on Coinbase stock. His $30 price target suggests an alarming 50% downside from here.

Notable figures in Coinbase Q4 report

• Lost $557 million that translates to $2.46 a share
• That compares to $840 million of profit last year
• Revenue tanked about 75% YoY to $629 million
• Consensus was $2.52 loss on $588 million revenue
• Trading volume in its Q4 tanked to $145 million

Dolev is bearish on the category

According to Coinbase, its subscription and services revenue climbed 34% in the recent quarter, as per its earnings press release. Still, Mizuho’s Dolev said:

I’m extremely bearish on the overall category. As money becomes tighter and people realise they might be laid off, I don’t think they’ll play crypto. So, I don’t see great things in 2023 for them.

Transaction revenue was down 12% year-on-year in the fourth quarter. Coinbase now has $5.50 billion worth of total dollar resources.