Coinbase stock dips after muted Q2 outlook follows big Q1 earnings miss

Coinbase Global (NASDAQ:COIN) stock dropped 14% in Tuesday after-hours trading after the cryptocurrency exchange said its expects its number of monthly transacting users ("MTUs") and total trading volume to decline in Q2 from Q1 levels, as crypto prices slumped in April. "In April, we saw continued declines in both crypto asset volatility and crypto prices, which we believe are associated with weakness in financial markets," the company said in its Q1 shareholders letter. "We continue to expect that during a prolonged and stressful scenario for our business, we will aim to manage our 2022 potential Adjusted EBITDA losses to approximately $500M on a full-year basis," it added. Crypto market capitalization dropped 18% from the end of March and crypto asset volatility declined 14% vs. Q1 average and was the lowest levels observed since mid-2020. The cryptocurrency exchange's outlook for 2022 is largely unchanged. It expected 5.0M-15.0M MTUs in prior guidance, 2022 transaction expenses