Coinbase stock rises on Q4 earnings beat
Now to some movers that were watching ahead of the opening bell. Looking at Coinbase, which is up a little bit this morning, the fourth quarter revenue did beat analysts estimates despite a 75% drop from a year ago. So big deal that they beat. They dropped 75% from a year ago. Trading volume was down 73% year-over-year. Frankly, Brad, I'm surprised to see this stock higher at all. These results, I mean, I guess people think things are going to get a little bit better.
It's down 71% from a year earlier. Like Coinbase is not doing great. Show me those people that are thinking things are going to get better right now with Coinbase, quite honestly, because you have a lot of this tree right now. Cowan, out earlier in our Embryan size, they sent us this note earlier today. Cowan saying, remain cautious on structurally higher costs and policy chaos versus previous cycles here. Coinbase addressed all of those things, whether on the regulatory front or on the end user front on the earnings call. They generate most of their transaction revenue today from the retail customer base.
That's one thing. They also, in their subscription product, they're going to be ramping up, trying to drum up more demand so that people buy into that experience. And so they believe that fees, they're going to compress in the near term due to commoditization. They have yet to see that in crypto. And they think that after 2022, there's more value placed on a trusted platform and a regulated compliant approach is what they're banking on there, but that regulated compliant approach could also be a disruptor or a net detractor for their business in the near term, depending upon what it looks like. Because they're still looking for answers themselves. They just submitted a letter to the SEC.
The company did say first quarter subscription and services revenue will be $325 million. In the last quarter, it was about $210.5 million if I'm reading correctly here. So I don't know. I mean, I guess that would be a little area of improvement perhaps, but to your point, besides that, there's not much else to be found in here that is super positive. Fourth straight quarterly loss for the company. So that's Coinbase.
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