The fourth quarter was good for Crypto and Wall Street analysts, they expect us to lead Us Exchange Coinbase (COIN) have published a great leap in the profits of the previous three months.
Revenue for the fourth quarter is expected to have been $ 1.8 billion, according to FACTSET, compared to $ 1.26 billion in the third quarter. It is estimated that earnings per share have increased to $ 1.99 from $ 0.41.
Perhaps the most important thing, thanks to the great concentration through cryptography after the victory of Donald Trump’s presidential elections, analysts expect the volume of exchange to have increased to $ 195.9 billion in the last three months of the year since $ 185.3 billion in the third quarter. That figure of $ 195.9 billion would be the strongest quarterly result from the fourth quarter of 2021.
“We maintain our upward thesis in La Moneda, seeing the company well positioned to benefit as cryptography begins a possible transition to a new era,” Citi Bank analysts wrote in a note.
The bank has a purchase rating in the shares and this week increased its objective price to $ 350 from $ 275. Tuesday’s shares are quoted to $ 270, ahead of almost 90% from the previous year level. However, the CITI team hopes that Coinbase report revenues of the fourth quarter of $ 1.7 billion, losing the estimate of consensus of $ 1.8 billion.
The November choice was a “monumental catalyst for the cryptographic ecosystem,” wrote Ken Worthington by JPMorgan, who is still neutral in the actions. View fourth quarter revenues at $ 1.77 billion, also a failure of the estimate of $ 1.8 billion.
Perspective in 2025
Although the last months of 2024 had many catalysts for cryptography and, therefore, Coinbase, 2025 is difficult to predict since policy changes generally take some time to enter into force, say some Wall Street analysts.
“For [2025]We assume that the prices of static cryptography and the most standardized volumes, resulting in a growth of yoy transactions income from 6% compared to the growth consensus of 3%, ”said Citi.
“Not very different from the past, we hope that the actions remain as a ‘risk’ play throughout 2025 and will probably remain volatile around macro developments and swings in the feeling of the market,” Citi continued. “That said, we expect the next 1-2 years to be highly formative for the business model/competitive strategy of Coinbase, as well as for the greater space of digital assets.”
One of Coinbase’s main priorities during the past year has been to diversify its income flow, 50% of which still comes from commercial rates. Retail merchants, who pay the highest negotiation rate, have not yet returned to the same levels observed in 2021, according to the Kaiko research firm. The participation of the volume from that clientele was reduced to only 18%, below 40% in 2021, which continues to weigh on transactions income, Kaiko said.
According to CITI, Coinbase could solve this problem in 2025 by leaning even more in asset token, integrated integrated and web3 intelligent contract applications, potential efficiencies in transmission and remittances, as well as the use of the blockchain as AI, among others.
“In our opinion, the next evolution for Coinbase’s growth trajectory will depend on utility … an area with many concepts of concepts, but perhaps waiting to be unlocked with lighter rules,” bank analysts wrote.
