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Coinbase Reports Drop in Profit - WSJ

1. Coinbase's profit dropped to $66 million from $1.2 billion year-over-year. 2. Revenue rose to $2 billion but missed Wall Street's $2.1 billion target. 3. Shares fell 2.8% in after-hours trading despite announcing acquisition of Deribit. 4. Quarterly revenue declined 10% from the previous quarter influenced by Bitcoin's price. 5. Bitcoin recently surged above $100,000, impacting Coinbase's market position.

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FAQ

Why Bearish?

The significant drop in profit and revenue miss indicates potential challenges. Historical examples include similar earnings misses leading to prolonged stock declines.

How important is it?

The article reveals crucial financial data that can affect trading decisions and market sentiment.

Why Short Term?

Immediate effects are evident with after-hours trading losses, but future outlook hinges on Bitcoin price recovery.

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