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▲ Cryptocurrency exchange, virtual assets/AI generated image
Bullish, the cryptocurrency exchange backed by Peter Thiel, is facing the burden of slowing trading volume ahead of its Q1 earnings announcement. The market is paying attention to how the forecast for increased revenue, expected decrease in earnings per share, expanded short selling, and reduced Q1 trading volume will affect its performance and stock price.
Benzinga reported on the 13th that Bullish is scheduled to announce its Q1 earnings before the market opens on Thursday. Analysts expect Bullish's earnings per share to be $0.17, a 10% decrease from the previous quarter. Revenue is projected at $94.87 million, an expected increase of 2.56% from the previous quarter.
The consensus target price for Bullish shares is $51.91, based on evaluations from 12 analysts. The highest target price was $65, presented by Citigroup in March. The average target price based on the three most recent analyst evaluations is $48.33, indicating a potential upside of 13.46% for the stock price.
However, investor sentiment is mixed. The short interest in Bullish stock increased from 8.82 million shares to 8.98 million shares, which accounts for 17.90% of the publicly available float. Benzinga reported that a high short interest indicates bearish sentiment.
Technical indicators showed mixed signals. The Moving Average Convergence Divergence (MACD) indicated a buy signal for Bullish stock, while the Relative Strength Index (RSI) remained just above the 50-line, showing a neutral state. Benzinga's Edge Stock Ranking assessed Bullish stock's long-term trend as weak, but its short-term and medium-term trends appeared positive.
The main concern is the decrease in cryptocurrency trading volume. Bullish recorded a total trading volume of $196.7 billion, including spot and derivatives, for the quarter ended March 31. This is an 11.5% decrease from the previous quarter. As exchange performance is closely tied to trading volume, the extent to which this slowdown in trading volume affected profitability has emerged as a key variable for Q1 earnings.
Bullish stock closed down 2.79% at $42.80 in regular trading on Tuesday and also showed a 3.25% weakness in pre-market trading. Benzinga reported that Bullish debuted on the stock market last August, and Ark Invest, led by Cathie Wood, is one of its major investors.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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