Coinbase is facing first-quarter earnings challenges, Palantir shares are tumbling due to a weak revenue forecast, and Rivian stock is falling after Ford unloaded 8 million shares.
- Welcome back to Yahoo Finance Live, everyone. It's time for a Triple Play. And I'm going to kick us off with crypto exchange platform Coinbase. Now, crypto crumble isn't a tasty dessert, but really is more of a descriptor of how the crypto funds are doing today in the declines that we're seeing. Now, Coinbase, the largest cryptocurrency exchange platform in the US, now trading around its 52-week low there at about $83.26 there. And it's actually down around 66% year to date. Of course, Bitcoin, we saw it dropped below $31,000. Other tokens, Ethereum Litecoin, also followed, taking of course Coinbase down with it.
Now, as you know, Coinbase, it's one of these platforms that it's largely made up of retail investors, in fact, a larger share than institutional investors, about 36.5%, or about $9.26 billion. Now, Coinbase is going to release its quarterly earnings after the bell tomorrow. We'll see how those earnings look after earnings for the last four quarters have been split between beating twice and missing twice. But Cathie Wood's Ark still big on this, so we'll have to see. Perhaps they could see a turnaround. But a grim day right now for Coinbase.
- Yeah. A lot of today correlated to, like you said, Rochelle, the activity that we're seeing in the crypto market. We know Bitcoin under a significant amount of pressure. Investors finding reason to sell some of those crypto holdings along with the broader market pullback that we are seeing. So Coinbase, a name to watch tomorrow.
I was looking at some commentary here from the Street. Dan Dolev, who we've had on the show a number of times, he's over it Mizuho, and he was out with the note saying that consensus revenue expectations for the second quarter are still too optimistic. So it could be a big mover in tomorrow's trading. Speaking of a big mover, Palantir shares sinking today following its earnings report. Now, the company projecting second quarter revenue will grow at its slowest pace since going public due in part to a slowdown in its government side of the business.
Now, Citi with a sell rating on the stock, a $10 price target, wrote in a note this morning that the results, quote, "reinforced concerns around slowing growth." Palantir tried to reassure the Street, saying that there is potential upside to its outlook given developing geopolitical events. Doesn't look like the Street is buying it at least just yet. Taking a look at shares, off just over 20% today. They're trading nearly 80% below their record high in January, Dave.
- I just want to piggyback off what you said there about geopolitical events. It's always interesting to see the numbers and then read the letter to the shareholders or hear the commentary. And their CEO, Alex Carp, I'm interested in what you make of this, he said, we are playing a much more critical and bigger role than we're allowed to mention or would ever discuss in public regarding current events. Again, they are clearly saying there's a lot going on here that we're not allowed to reveal in our quarterly results that you said the Street is not buying. But are getting a clue as to what he's referencing and what it might pertain to?
- So the geopolitical tensions, obviously, when it comes to Russia--
- To Russia and China.
- --and Ukraine and China, that all plays significantly into Palantir's business and will have a large impact, at least you would think, on the company's revenues, at least over the coming quarters. But that's the thing about Palantir. When you're investing in this company, there's so much that you don't know. And we hear that from Alex Carp every single quarter. So if you're willing to take a chance, have to take the information that's given to you. And obviously investors, at least today, finding a reason to sell because of that fear of slowing growth.
- Trust what's below the surface there. All right. My play is EV maker Rivian, RIVN, trading at a new 52-week low on news over the weekend that Ford had dumped 8 million shares of the startup. A stock lockup expired over the weekend. And that's what prompted the sell off.
JP Morgan also reportedly will unload more than 13 million shares for a yet unknown seller. Rivian plans to produce 25,000 electric trucks and SUVs. That's half of their initial forecasts. And shares down. You can see tumbling on the day and down more than 70% from their initial public offering back in November, Rochelle. It has been a bumpy ride, to say the least.
- I mean, right out of the gate, Rivian was having issues in terms of meeting production, that it had supply chain issues. And now the first chance that a lot of these people get to dump some of their stock obviously because of the IPO lockup period has ended. And some of this is rumor. We're still waiting for a lot of this to be confirmed. And even though Ford is saying that potentially it could sell that 8 million, it still does have 102 million shares in Rivian.
But then it also makes you wonder what's going to happen with Amazon. Are they going to say is committed to them? And then you also have to wonder, we're seeing JPMorgan Chase could also sell between 13 and 15 million shares according to Forbes. So a lot of movement here. We're still not exactly certain how much people are going to offload. But it's definitely one to watch. And as you mentioned, really a bumpy road for Rivian so far.