- Bullish stock price has moved sideways in the past few weeks.
- The company recently bought Equiniti in a $4.2 billion deal.
- Bullish will publish its financial results tomorrow, May 14.
Bullish stock price has been flat in the past few weeks as traders reflect on the recent Equiniti acquisition and trends in the crypto market. BLSH was trading at $41 today, up by nearly 70% from its lowest point this year. There are signs that the stock has formed a bullish pattern ahead of its financial results on Thursday.
Bullish to Publish First Earnings After Equiniti Buyout
Bullish, a top crypto exchange, will be in the spotlight on Thursday as it releases its financial results, which will provide more color on its business amid the ongoing crypto winter.
These will be the first earnings after the company acquired Equiniti in a $4.2 billion deal. Equiniti is a global transfer agent that processes over $500 billion in annual payments to over 20 million shareholders.
Bullish hopes that this buyout will help to diversify its business and offer end-to-end tokenization services. The combined company will make over $1.5 billion in annual revenue.
The most recent results showed that Bullish had digital asset sales of over $64.3 billion in the fourth quarter and $244 billion in the full year. It had a net loss of $536 million in the fourth quarter and an adjusted revenue of $92.5 million.
READ MORE: Nebius Stock Soared as We Predicted: Is the Rising Depreciation a Risk?
Still, it had some positives, including its growing market share in the options market, where its trading volume jumped to over $9 billion. It also maintains the number one market share in the index industry, due to its Coindesk business.
However, the upcoming results are expected to show that its business slowed in the first quarter as the crypto winter continued. The average estimate is that its revenue dropped to $94 million, with its earnings per share being 17 cents.
Its most recent monthly data shows that its spot trading volume was $174 billion in the first quarter, down from $228 billion in the same period last year. Also, its total trading volume – which includes spot, options, and perpetuals – dipped from $25o billion to $196 billion this year.
Other top companies in the crypto industry have published weak financials. For example, Coinbase’s revenue dropped by over 20% in the first quarter as transactions dropped. The same is true with Robinhood, which has become a major player in the industry.
Bullish Stock Price Technical Analysis
The daily chart reveals that the BLSH stock price bottomed at $25.64 in February to the current $41.75. A closer look shows that it has formed an inverted head-and-shoulders pattern.
It has also remained above the ascending trendline that links its lower lows since February. Like the 50-day moving average, this trendline has provided it with a good dynamic support. It has also retested the 23.6% Fibonacci Retracement level.
Therefore, the Bullish stock will likely jump after its earnings tomorrow, May 14. If this happens, the next point to watch will be the psychological level at $50.
However, a drop below the dynamic support will invalidate the bullish outlook and point to more downside. This is a likely scenario as the company will likely publish a weak financial report.
READ MORE: Nio Stock C&H Points to a Jump to $10 as Focus Shifts to May 21
