What to know:
- Coinbase (COIN) is expected to report revenue of $1.8 billion for the fourth quarter of 2024.
- Wall Street analysts estimate the exchange achieved its highest trading volumes since Q4 2021.
- Analysts foresee 2025 as a highly formative year for Coinbase as it seeks to diversify its revenue.
Fourth Quarter Overview
The fourth quarter showcased a robust performance for cryptocurrency, with expectations that Coinbase’s earnings significantly outpaced earlier months. According to forecasts, the revenue for this period is anticipated to be $1.8 billion, an increase from $1.26 billion in Q3. Earnings per share could rise to $1.99 from $0.41.
The anticipated trading volume for this quarter is expected to jump to $195.9 billion, marking the highest seen since Q4 2021, boosted by a crypto market rally spurred by Donald Trump’s presidential election victory.
Analyst Insights
Analysts at Citi have maintained a bullish outlook, suggesting that Coinbase is well-positioned for upcoming developments in the crypto market. They have increased their price target for the stock to $350 from $275, while others, like JPMorgan’s Ken Worthington, maintain a neutral perspective, estimating revenue at $1.77 billion, slightly below the consensus estimate.
Looking Ahead to 2025
Predicting the landscape for 2025 presents challenges, with analysts pointing out that regulatory changes typically require time to manifest. Citi analysts project static crypto prices, leading to moderate revenue growth of 6% year-over-year. They foresee a continued reliance on trading fees, with retail participation yet to return to pre-2021 levels.
