Two earnings reports are set to arrive today from fintech firms accessible via the ARK Fintech Innovation ETF (ARKF). Digital assets platform Coinbase Global, Inc. (COIN), and Argentinian e-commerce site MercadoLibre Inc. (MELI), report their earnings Thursday evening, offering investors the opportunity for exposure to the burgeoning landscape of online commerce via the fintech earnings-exposed ETF.
Eyes on COIN are watching for crypto trading volume, which has fallen so far this year, as a pillar of the firm’s prospects. That said, analysts are also watching for COIN’s revenues from subscriptions and services which benefit from rising treasury yields.
COIN may benefit in the coming months from a second chapter in the life of the cryptocurrency market following Elon Musk’s purchase of Twitter (TWTR) which included $500 million from crypto shop Binance to foster crypto development and promote cryptocurrencies to a wider audience.
For MELI, earnings will be influenced by its shipping growth strength as well as its online wallet and payment services. The company is doing well despite its stock price taking a hit so far this year, dropping -34% YTD, rising 6.3% over the last five days. MELI has had projections of its EPS and revenue upgraded more than downgraded as interest in e-commerce stocks continue to be widely followed by curious investors.
ARKF lists COIN as its third-largest holding at 7.2%, while MELI stands as its sixth-largest at 6.3%. ARKF actively invests in companies set up to benefit from advances in fintech, whether it be in the blockchain, new types of transactions, or expanded and streamlined sales platforms. ARKF holds around 40 stocks and charges 75 basis points.
ARKF saw its flows grow by more than $55 million for the last month compared to its flows over the last three months, with its performance over one month increasing by more than 15% compared to its three-month return.
With markets still digesting this week’s latest Fed rate hike, the October market rally may prove more durable given underlying economic indicators continuing to show healthy momentum. Investors should keep a fintech earnings ETF like ARKF in their sights as the year winds down.
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