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Coinbase’s earnings report this week could be crucial for the stock, according to one trader.
Although the shares of the cryptocurrency trading platform fell from their initial public offering price, “that negativity is gone,” Blue Line Capital founder and chairman Bill Baruch said on Friday, at CNBC’s “Trading Nation”.
“I think their user growth will exceed 60 million verified users, and I think that will kind of be a benchmark that they will continue to feed off of. The trading business is also where they are paid. I think it’s gonna pick up “even if major crypto assets like bitcoin or ethereum are fighting, he said.
This bodes well for Coinbase’s second quarter report, scheduled for Tuesday afternoon, said Baruch, owner of Bitcoin and Ethereum.
“There is good trendline support that it is coming out of and it is broken out of a resistance wedge,” he said. “I think this thing can go to 290-300 and I think the earnings should be positive and the outlook should be good.”
Coinbase shares closed at $ 258.26 on Friday, up about 1%. They climbed an additional 3.8% to $ 268 in Monday’s trading session. A run to $ 290 or $ 300 would be a 12-16% increase from Friday’s closing levels.
Also one to watch is Disney’s third quarter earnings report, Gina Sanchez, founder and CEO of Chantico Global, said in the same interview.
“It’s a company that has hit an absolute home run with Disney +, especially during the pandemic, but has been completely eclipsed by the $ 4.5 billion loss in revenue it suffered as a result of the closure of parks and their studios, ”said Sanchez, also chief market strategist at Lido Advisors.
“But look,… it’s coming back,” Sanchez said. “They’ll get the revenue from the park, and in the meantime, what Disney + is opening up is a much more lucrative way for Disney to bring new content to market in a way that allows them to retain a greater share of the outlet. “
Disney is due to report Thursday afternoon. The stock closed less than half of 1% on Friday, but lost strength in pre-market trading on Monday.
Disclosure: Baruch owns Bitcoin and Ethereum. Lido Advisors owns shares of Disney.
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