Raymond James analyst Patrick O’Shaughnessy reiterated his Underperform rating for Coinbase (NASDAQ 🙂 in advance of the Q1 results.

An analyst believes that the company will see a decline in year-on-year volume (YoY), for the first time since it became a public company despite difficult comps.

“Longer-term, we continue to expect substantial pricing compression from competition as well as the unification of Coinbase’s two retail apps into one lower-priced app. We also can’t overemphasize the regulatory and political risks facing the business model such as the applicability of existing securities laws to revenue streams such as Staking, new tax reporting requirements, the examination of best execution obligations for brokers, and the SEC potentially deeming crypto tokens to be securities,” O’Shaughnessy said in a client note.

O’Shaughnessy predicts that trading volumes will be lower on both a sequential and y/y scale, but both are expected to miss the consensus. These factors contribute to lower average daily volumes and flat crypto prices.

Net-net, an analyst, lowered 1Q22 non GAAPEPS estimates to $0.51. This is down from $0.68 for 2022. The out-year estimations were also reduced.

Coinbase shares are down 2.7% pre-market Monday

By Senad Karaahmetovic