Coinbase easily cleared Q4 estimates late Thursday with a major earnings and revenue beat. COIN stock rallied ahead of the report after receiving multiple price target hikes earlier in the week. Meanwhile, bitcoin has retreated from its $100,000 level for most of February.
Coinbase reported earnings of $4.68 per share, compared to $1.04 last year. Total revenue spiked 138% to $2.27 billion
FactSet expected earnings of $2.11 per share on $1.84 billion in revenue.
Transaction revenue rose to $1.6 billion billion, from $529 million last year, and outpaced analyst expectations for $1.26 billion.
Subscription and services revenue also topped estimates with a 71% jump to $641 million. Analysts expected $611 million.
Coinbase noted that it generated $750 million in transaction revenue through Feb. 11, and expects Q1 subscription and services revenue to range from $685 million to $765 million. The crypto exchange forecasts transaction expenses to range in the mid-to-high teens as a percentage of net revenue.
Price Target Hikes
H.C. Wainwright on Wednesday hiked its price target on Coinbase stock to 330 from 255 and kept a buy rating on the shares, The Fly reported. President Donald Trump's reelection in November "proved to be a shot in the crypto industry," the firm wrote.
H.C. Wainwright expects upside to transaction revenue and total revenue forecasts based on the industry's "strong tailwinds."
Citi agrees that Coinbase is well-positioned to benefit as crypto begins a potential transition into a new era, according to a Friday research note. The firm maintained its bullish thesis on COIN stock, but expects it to remain a "risk-on" play throughout 2025. Shares will likely remain volatile around macro developments and sentiment swings, as old policies take time to untangle. Citi is also hopeful for stablecoin reform in mid-2025, which should provide a boost to Coinbase. The firm raised its price target on COIN stock to 350 from 275 and maintained a buy rating.
Coinbase Stock
COIN stock retreated about 8% Friday, falling back below its 50-day line. Coinbase jumped more than 8% Thursday prior to earnings.
Shares have been consolidating since mid-December, with much of the pullback holding below the stock's 10-week moving average. The stock on Wednesday was nearly 30% below a standard buy point of 349.75.
Investors could use the Jan. 24 high of 310.61 as an early entry opportunity, which would break a downtrend.
Meanwhile, bitcoin traded around $97,000 late Friday, but has held under $100,000 through most of February. Bitcoin hit a record high above $109,000 on Jan. 20 as President Trump's inauguration signaled a more crypto-friendly administration. However, Trump's tariff plans and uncertainty for the next Federal Reserve rate cut have stalled momentum, despite digital asset executive orders and pro-crypto appointments.
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