Coinbase, Block jump 12% following third quarter earnings

Quick Take

  • Investors cheered third quarter earnings, sending Coinbase and Block soaring past the rest of the market.
  • Both stocks were up about 12% in early trading.

Coinbase and Block soared 12% a day after reporting third quarter earnings, outpacing gains by the S&P 500.

Coinbase's third-quarter results showed expenses fell to $1.1 billion from $1.8 billion in the previous period. Trading volumes were lower, but the exchanges subscription and services revenue showed encouraging signs, with a company forecast of $700 million for the full year topping the analyst estimate for $667 million compiled by FactSet.

In the third quarter, subscription and services revenue grew to $211 million from $147 million in the second.

Block shares also jumped after earnings Thursday revealed total net revenue of $4.52 billion in the third quarter, which beat the $4.49 billion estimate and was up 17% year-over-year. Earnings per share also trounced expectations, coming in at 42 cents versus the 23 cent estimate.

Excluding bitcoin revenue — $1.76 billion— net revenue was $2.75 billion. The company reported a net loss of $14.7 million for the third quarter. 

Ark Invests Cathie Wood loaded up on both stocks over the past week ahead of earnings. 

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