The fourth quarter is a great for Crypto and Wall Street analysts that are expected to lead the US exchange Coinbase (coin) to post a huge jump in revenues from the past three months.
The revenue for the fourth quarter is expected to be $ 1.8 billion, according to the factset, from $ 1.26 billion to the third quarter. Revenue-every-share revenues are estimated to rise to $ 1.99 from $ 0.41.
Perhaps more importantly, thanks to the main rally throughout the crypto Following the success of the Donald Trump presidential election, analysts expect the exchange rate to rise to $ 195.9 billion in the last year of three months from $ 185.3 billion to the third in the third Quarter. That $ 195.9 billion figure will be the strongest quarterly result since the fourth quarter of 2021.
“We keep our bullish thesis on the coin, seeing the company positioned to benefit as crypto begins a potential transition to a new era,” the Citi Bank analysts wrote on a note.
The bank has a rating of stock in stock and this week increased the target price to $ 350 from $ 275. Shares Tuesday traded at $ 270, leading nearly 90% from last year’s . The Citi team, however, is hoped that Coinbase will report a fourth quarter income of $ 1.7 billion, losing an estimate of $ 1.8 billion consensus.
The November election is a “massive catalyst for the crypto ecosystem,” JPMorgan’s Ken Worthington wrote, which, however, remains neutral in shares. He saw the fourth quarter income of $ 1.77 billion, also a miss from a $ 1.8 billion estimate.
Outlook in 2025
While the last months of 2024 have many catalysts for crypto and thus Coinbase, 2025 is difficult to predict as policy changes usually take some time to carry out, say some Analysts of Wall Street.
“For (2025), we assume static crypto prices and factors that are more normalizing volume resulting in 6% transaction income growth compared to 3% growth,” said Citi.
“Unlike the past, we hope that the stock will remain as a ‘risk-on’ play throughout 2025 and will likely remain volatile around the macro’s development and swings in the market sentiment, “Citi continued. “That said, we look forward to the next 1-2 years to be highly formative for Coinbase’s business/competitive model, as well as for larger digital asset spaces.”
One of the Coinbase’s main priorities last year was the varying stream of income, 50% of which still came from trading fees. Retail traders, who pay the highest trading fees, still have not returned to the same levels seen in 2021, according to the research firm Kaiko. Part of the volume that came from this client retreats up to 18%, down from 40% in 2021, which continues to weigh the transaction revenue, Kaiko said.
According to Citi, the Coinbase could solve this issue in 2025 by still leaning to the tokenization of others.
“In our point of view, the next evolution for the growth of Coinbase’s trajectory relies on the utility … a place with many proof-of-concepts, but probably waiting to be locked with clearer policies, “written by bank analysts.
