Robinhood’s Fourth Quarter Performance Might Influence Coinbase’s Upcoming Earnings
Analysts predict that Robinhood’s crypto revenue could significantly increase, reflecting broader market trends.
A significant uptick in user activity leading up to and following the election of Donald Trump in November has experts forecasting a 440% quarterly surge in Robinhood (HOOD)’s cryptocurrency trading revenue to $345.5 million, according to FactSet.
Shares of HOOD have risen by 350% over the past year as retail investors return to the app, propelled by expectations of a more favorable macro climate for both stocks and crypto.
In the fourth quarter, Robinhood’s total revenue is projected to reach $934.9 million, rising from $660.5 million three months prior, with an expected earnings-per-share of $0.41, compared to $0.18 previously.
Tracking Robinhood’s trading metrics, often utilized by analysts to gauge Coinbase’s (COIN) trading volume, has historically shown a strong correlation between the two platforms.
Buddish also indicated that Robinhood achieved an impressive 5-fold growth in reported crypto volumes, estimating around $69 billion through December 27. He anticipates that Coinbase’s retail volume may exceed $108 billion in the wake of these trends.
On the horizon, Coinbase is expected to announce its fourth-quarter earnings, which could mark a record quarter for trading volume, potentially generating $1.8 billion in revenue. With expectations running high, shares of COIN have also increased by 90% over the previous year, currently trading at $269.88.
