The Bullish stock price has been in a free fall in the past few weeks as the initial post-IPO hype ended. BLSH was trading at $52.6, down from the all-time high of $117. So, what’s next for the Bullish shares ahead of its first earnings report as a publicly traded company?
Why the Bullish Stock Price Has Rashed
Bullish, the parent company of Coindesk, has come under increasing pressure after going public. Its stock has plunged by over 50%, erasing billions of value.
The decline occurred because Wall Street analysts gave it different ratings. Some analysts, like Citi’s Peter Christiansen, Rosenblatt’s Chris Brendler, and Canaccord Genuity’s Joseph Vati, have expressed a bullish outlook on the company.
Others, however, like Compass Point’s Ed Engel and Jefferies’ Daniel Fannon, believe that the stock is worth much less. Engel expects it to fall by 14.5%, while Fannon sees it falling by 7%.
The ongoing Bullish stock price crash is also similar to what other newly listed companies have done. Most of the companies listed this year, such as CoreWeave and Circle, initially rose but then pulled back.
Most notably, the BLSH stock crash aligns with the actions of other Bitcoin treasury companies, including Strategy, Metaplanet, Trump Media, and MicroCloud Hologram. Many of them have plunged in the past few months as the industry became crowded. Bullish is one of the top companies in the space with 24,000 coins.
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The next important catalyst for the Bullish stock price will be its results, which will come out next week. The seven analysts tracking the company expect that its revenue will come in at $55.7 million, while its loss per share will be $0.05.
Analysts see the annual revenue rising to $240 million this year, followed by $307 million next year.
A major risk that Bullish has is that most of its revenue comes from transactions. In most cases, transaction revenues depend on Bitcoin and other altcoin prices. In contrast, other exchanges like Coinbase have diversified their business to other solutions like subscriptions, staking, and custody.
BLSH Stock Analysis Ahead of Earnings
The hourly chart shows that the BLSH stock price has been in a strong freefall since going public. It peaked at $117.20 in August to a low of $48 earlier this month. It attempted to recover, but found rejection at $55.25.
Bullish stock remains below all moving averages, while the Relative Strength Index (RSI) has pointed downwards. Therefore, the most likely scenario is where the stock continues falling as sellers target the key support level at $48. A move below that price will point to further downside to $45.
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