Jim Cramer’s Lightning Round: 8 Stocks to Watch

3. Coinbase Global, Inc. (NASDAQ:COIN)

Cramer called Coinbase Global, Inc. (NASDAQ:COIN) an “up stock” and said:

“Coinbase is what I call an up stock. It’s just an up stock. You’re not gonna stop it. Palantir’s an up stock. Coinbase is an up stock. Robinhood’s an up stock. These are stocks that there are buyers every time they pull back and there probably will be to year end. Coinbase is a winner.”

Coinbase (NASDAQ:COIN) offers financial infrastructure and technology for the crypto economy, providing a primary financial account for consumers, a marketplace for institutional crypto transactions, and tools for developers to build and accept crypto payments. In its third-quarter report, it posted a net income of $75.5 million, or $0.28 per share. While these results were positive, they fell short of analysts’ expectations.

Revenue for the period increased significantly year over year, reaching $1.21 billion, up from $674 million during the same period last year. However, it still did not meet analysts’ projections. A significant portion of the company’s revenue comes from transaction fees, but in Q3, transaction revenue saw a decline of 27% from the previous quarter, dropping to $483 million. Additionally, subscription and services revenue also experienced a decrease, falling by 7% to $556 million.

Despite these setbacks, Coinbase (NASDAQ:COIN) management expressed satisfaction with the company’s progress toward diversifying its revenue streams. They highlighted that subscription and services revenue is on track to surpass $2 billion for the year, showing the effectiveness of the company’s long-term strategy.

During the earnings call, management also discussed the challenges the company is facing in the fourth quarter. They noted that the outlook for subscription and services revenue in Q4 is impacted by a 10% drop in Ethereum prices in October compared to the average for Q3, as well as the effects of lower interest rates.