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Coinbase could jump up to 16% after earnings this week, trader says

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Trading Nation: Disney, Airbnb, Coinbase earnings on deck — Here's what to watch

Coinbase's earnings report this week could be pivotal for the stock, one trader says.

Though shares of the cryptocurrency trading platform have fallen from their initial public offering price, "that negativity's flushed out," Blue Line Capital founder and President Bill Baruch told CNBC's "Trading Nation" on Friday.

"I think their user growth is going to exceed verified users of 60 million, and I think that's going to be sort of a benchmark that they're going to continue to feed on. Trading activity's where they get paid as well. I think that's going to pick up" even if major crypto assets such as bitcoin or ethereum struggle, he said.

That bodes well for Coinbase's second-quarter report, scheduled for Tuesday afternoon, said Baruch, who owns bitcoin and ethereum.

"There's a good trend line support it's coming off of and it's broken out of a wedge of resistance," he said. "I think this thing can go to 290-300 and I think earnings should be positive and the guidance should be good."

Coinbase shares ended trading at $258.26 on Friday, up about 1%. They climbed an additional 3.8% to $268 in Monday's premarket trading session. A run to $290 or $300 would be a 12-16% increase from Friday's closing levels.

Disney's third-quarter earnings report is also one to watch, Chantico Global founder and CEO Gina Sanchez said in the same interview.

"This is a company that hit an absolute home run with Disney+, especially during the pandemic, but that was completely overshadowed by the $4.5 billion loss in revenue that they withstood from the closing of the parks and their studios," said Sanchez, also chief market strategist at Lido Advisors.

"But look, … that is coming back," Sanchez said. "They will get that park revenue back, and in the meantime, what Disney+ opens up is a much more lucrative way for Disney to bring new content to the market in a way that they keep more of the take."

Disney is scheduled to report Thursday afternoon. The stock closed less than half of 1% higher on Friday, but lost some steam in premarket trading on Monday.

Disclosure: Baruch owns bitcoin and ethereum. Lido Advisors owns shares of Disney.

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